Bread Financial (BFH) 10-Q 4 Nov 22 2022 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2022	Oct. 21, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Sep. 30, 2022
Entity File Number	001-15749
Entity Registrant Name	BREAD FINANCIAL HOLDINGS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	31-1429215
Entity Address, Address Line One	3095 Loyalty Circle
Entity Address, City or Town	Columbus
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	43219
City Area Code	614
Local Phone Number	729-4000
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	BFH
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		49,853,068
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Entity Central Index Key	0001101215
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Interest income
Interest and fees on loans	$ 1,195	$ 992	$ 3,325	$ 2,845
Interest on cash and investment securities	23	2	34	6
Total interest income	1,218	994	3,359	2,851
Interest expense
Interest on deposits	66	39	142	130
Interest on borrowings	67	52	166	168
Total interest expense	133	91	308	298
Net interest income	1,085	903	3,051	2,553
Non-interest income
Interchange revenue, net of retailer share arrangements	(136)	(97)	(333)	(251)
Other	30	45	75	114
Total non-interest income	(106)	(52)	(258)	(137)
Total net interest and non-interest income	979	851	2,793	2,416
Provision for credit losses	304	161	902	180
Total net interest and non-interest income, after provision for credit losses	675	690	1,891	2,236
Non-interest expenses
Employee compensation and benefits	202	168	572	489
Card and processing expenses	82	81	248	242
Information processing and communication	75	54	192	161
Marketing expenses	44	35	124	113
Depreciation and amortization	29	23	80	70
Other	54	70	167	181
Total non-interest expenses	486	431	1,383	1,256
Income from continuing operations before income taxes	189	259	508	980
Provision for income taxes	55	53	150	243
Income from continuing operations	134	206	358	737
Income (loss) from discontinued operations, net of income taxes		18	(1)	46
Net income	$ 134	$ 224	$ 357	$ 783
Basic income per share (Note 13)
Income from continuing operations (in dollars per share)	$ 2.69	$ 4.14	$ 7.17	$ 14.81
Income (loss) from discontinued operations (in dollars per share)		0.36	(0.01)	0.94
Net income per share (in dollars per share)	2.69	4.50	7.16	15.75
Diluted income per share (Note 13)
Income from continuing operations (in dollars per share)	2.69	4.11	7.16	14.74
Income (loss) from discontinued operations (in dollars per share)		0.36	(0.01)	0.94
Net income per share (in dollars per share)	$ 2.69	$ 4.47	$ 7.15	$ 15.68
Weighted average common shares outstanding (Note 13)
Basic (in shares)	49.8	49.8	49.9	49.7
Diluted (in shares)	49.9	50	50	50

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 134	$ 224	$ 357	$ 783
Other comprehensive loss
Unrealized loss on available-for-sale debt securities	(9)	(3)	(25)	(14)
Tax benefit	2		6	1
Unrealized loss on available-for-sale debt securities, net of tax	(7)	(3)	(19)	(13)
Unrealized gain on cash flow hedges		1		2
Unrealized gain on cash flow hedges, net of tax		1		2
Foreign currency translation adjustments		(21)		(40)
Other comprehensive loss, net of tax	(7)	(23)	(19)	(51)
Total comprehensive income, net of tax	$ 127	$ 201	$ 338	$ 732

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
ASSETS
Cash and cash equivalents	$ 3,583	$ 3,046
Credit card and other loans
Total credit card and other loans (includes loans available to settle obligations of consolidated variable interest entities: 2022, $12,570; 2021, $11,215)	18,126	17,399
Allowance for credit losses	(2,073)	(1,832)
Credit card and other loans, net	16,053	15,567
Investment securities	218	239
Property and equipment, net	204	215
Goodwill and intangible assets, net	690	687
Other assets	1,212	1,992
Total assets	21,960	21,746
LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits	12,444	11,027
Debt issued by consolidated variable interest entities	4,015	5,453
Long-term and other debt	1,916	1,986
Other liabilities	1,186	1,194
Total liabilities	19,561	19,660
Commitments and contingencies (Note 9)
Stockholders' equity
Common stock, $0.01 par value; authorized, 200.0 million shares; issued, 49.8 million shares as of both September 30, 2022 and December 31, 2021	1	1
Additional paid-in capital	2,181	2,174
Retained earnings (accumulated deficit)	238	(87)
Accumulated other comprehensive loss	(21)	(2)
Total stockholders' equity	2,399	2,086
Total liabilities and stockholders' equity	$ 21,960	$ 21,746

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Credit Card and Loan Receivables Restricted for Securitization Investors	$ 12,570	$ 11,215
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized shares	200	200
Common stock, issued shares	49.8	49.8
Consolidated Variable Interest Entities
Credit Card and Loan Receivables Restricted for Securitization Investors	$ 12,570	$ 11,215

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss	Total
Balance at Dec. 31, 2020	$ 1	$ 3,427	$ (6,734)	$ 4,832	$ (5)	$ 1,521
Balance (in shares) at Dec. 31, 2020	117,100,000
Increase (Decrease) in Stockholders' Equity
Net income				783		783
Other comprehensive loss					(51)	(51)
Stock-based compensation		25				$ 25
Repurchases of common stock (in shares)						0
Dividends and dividend equivalent rights declared				(31)		$ (31)
Retirement of treasury stock		(1,281)	6,734	(5,453)
Retirement of treasury stock (in shares)	(67,400,000)
Other		(1)				(1)
Other (in shares)	100,000
Balance at Sep. 30, 2021	$ 1	2,170		131	(56)	2,246
Balance (in shares) at Sep. 30, 2021	49,800,000
Balance at Jun. 30, 2021	$ 1	3,443	(6,734)	5,371	(33)	2,048
Balance (in shares) at Jun. 30, 2021	117,100,000
Increase (Decrease) in Stockholders' Equity
Net income				224		224
Other comprehensive loss					(23)	(23)
Stock-based compensation		9				9
Dividends and dividend equivalent rights declared				(11)		(11)
Retirement of treasury stock		(1,281)	$ 6,734	(5,453)
Retirement of treasury stock (in shares)	(67,400,000)
Other		(1)				(1)
Other (in shares)	100,000
Balance at Sep. 30, 2021	$ 1	2,170		131	(56)	2,246
Balance (in shares) at Sep. 30, 2021	49,800,000
Balance at Dec. 31, 2021	$ 1	2,174		(87)	(2)	2,086
Balance (in shares) at Dec. 31, 2021	49,900,000
Increase (Decrease) in Stockholders' Equity
Net income				357		357
Other comprehensive loss					(19)	(19)
Stock-based compensation		23				23
Repurchases of common stock		(12)				$ (12)
Repurchases of common stock (in shares)	(200,000)					(200,000)
Dividends and dividend equivalent rights declared				(32)		$ (32)
Other		(4)				(4)
Other (in shares)	100,000
Balance at Sep. 30, 2022	$ 1	2,181		238	(21)	2,399
Balance (in shares) at Sep. 30, 2022	49,800,000
Balance at Jun. 30, 2022	$ 1	2,174		114	(14)	2,275
Balance (in shares) at Jun. 30, 2022	49,800,000
Increase (Decrease) in Stockholders' Equity
Net income				134		134
Other comprehensive loss					(7)	(7)
Stock-based compensation		7				7
Dividends and dividend equivalent rights declared				(10)		(10)
Balance at Sep. 30, 2022	$ 1	$ 2,181		$ 238	$ (21)	$ 2,399
Balance (in shares) at Sep. 30, 2022	49,800,000

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Common Stock dividends and dividend equivalent rights declared (in dollars per share)	$ 0.21	$ 0.21	$ 0.63	$ 0.63

CONDENSED CONSOLIDATED STATEM_5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS $ in Millions	9 Months Ended
	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 357	$ 783
Adjustments to reconcile net income to net cash provided by operating activities
Provision for credit losses	902	180
Depreciation and amortization	80	97
Deferred income taxes	(137)	20
Non-cash stock compensation	24	25
Amortization of deferred financing costs	18	23
Amortization of deferred origination costs	64	54
Change in other operating assets and liabilities
Change in other assets	(25)	(89)
Change in other liabilities	11	115
Other	57
Net cash provided by operating activities	1,351	1,208
CASH FLOWS FROM INVESTING ACTIVITIES
Change in credit card and other loans	(1,171)	88
Change in redemption settlement assets		(47)
Proceeds from sale of credit card loan portfolio		512
Purchase of credit card loan portfolios	(249)	(99)
Capital expenditures	(53)	(59)
Purchases of investment securities	(35)	(77)
Maturities of investment securities	25	61
Other	(5)	2
Net cash (used in) provided by investing activities	(1,488)	381
CASH FLOWS FROM FINANCING ACTIVITIES
Unsecured borrowings under debt agreements	218	38
Repayments/maturities of unsecured borrowings under debt agreements	(294)	(114)
Debt issued by consolidated variable interest entities	1,723	2,768
Repayments/maturities of debt issued by consolidated variable interest entities	(3,162)	(3,891)
Net increase in deposits	1,395	88
Payment of deferred financing costs	(10)	(13)
Dividends paid	(32)	(31)
Repurchases of common stock	(12)
Other	(4)	(2)
Net cash used in financing activities	(178)	(1,157)
Effect of foreign currency exchange rates on cash, cash equivalents and restricted cash		(4)
Change in cash, cash equivalents and restricted cash	(315)	428
Cash, cash equivalents and restricted cash at beginning of period	3,923	3,463
Cash, cash equivalents and restricted cash at end of period	3,608	3,891
Cash and cash equivalents reconciliation
Cash and cash equivalents	3,583	2,964
Restricted cash included within Other assets	25	655
Cash, cash equivalents and restricted cash included within Assets of discontinued operations		272
Total cash, cash equivalents and restricted cash	$ 3,608	$ 3,891

DESCRIPTION OF BUSINESS AND BAS

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2022
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION	1. DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION ​ DESCRIPTION OF THE BUSINESS ​ Effective March 23, 2022, Alliance Data Systems Corporation was renamed Bread Financial Holdings, Inc., and on April 4, 2022, its New York Stock Exchange ticker changed from “ADS” to “BFH”. Neither the name change nor the ticker change affected the Company’s legal entity structure, nor did either change have an impact on the Company’s financial statements. ​ Bread Financial Holdings, Inc. (BFH or, including its consolidated subsidiaries and variable interest entities (VIEs), the Company) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The Company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, the Company delivers growth for its partners through a comprehensive product suite, including private label and co-brand credit cards, installment lending, and buy now, pay later (split-pay). The Company also offers direct-to-consumer solutions that give customers more access, choice and freedom through its branded Bread Cashback TM ® TM ​ BASIS OF PRESENTATION ​ The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). For purposes of comparability, certain prior period amounts have been reclassified to conform to the current presentation, in particular, as a result of the spinoff of its LoyaltyOne segment and its classification as discontinued operations, the Company has adjusted the presentation of its Consolidated Financial Statements from its historical approach under SEC Regulation S-X Article 5, which is broadly applicable to all “commercial and industrial companies,” to Article 9, which is applicable to “bank holding companies.” While neither BFH nor any of its subsidiaries is considered a “bank” within the meaning of the Bank Holding Company Act, the changes from the historical presentation, to the bank holding company presentation, the most significant of which reflect a reclassification of Interest expense within Net interest income, are intended to reflect the Company’s operations going forward and better align the Company with its peers for comparability purposes. ​ The unaudited Condensed Consolidated Financial Statement should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on February 25, 2022; if not significantly different, certain note disclosures included therein have been omitted from these unaudited Condensed Consolidated Financial Statements. ​ The unaudited Condensed Consolidated Financial Statements included herein reflect all adjustments, which consist of normal, recurring adjustments that are, in the opinion of management, necessary to state fairly the results for the interim periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. ​ The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates and assumptions reflect the best judgement of management, but actual results could differ. The most significant of those estimates and assumptions relate to the Company’s Allowance for credit losses. ​ The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and all subsidiaries in which the Company has a controlling financial interest. All intercompany transactions have been eliminated. ​ RECENTLY ISSUED ACCOUNTING STANDARDS ​ In March 2022, the Financial Accounting Standards Board issued new accounting and disclosure guidance for troubled debt restructurings effective January 1, 2023, with early adoption permitted. Specifically, the new guidance eliminates the previous recognition and measurement guidance for troubled debt restructurings while enhancing the disclosure requirements for certain loan modifications, including requiring disclosure of gross principal losses by year of loan origination. The Company is evaluating the new guidance and any impacts on its financial position, results of operations and regulatory risk-based capital, none of which are expected to be material, along with any anticipated impacts on its operational processes, controls and governance. ​ ​

CREDIT CARD AND OTHER LOANS

CREDIT CARD AND OTHER LOANS	9 Months Ended
	Sep. 30, 2022
CREDIT CARD AND OTHER LOANS
CREDIT CARD AND OTHER LOANS	2. CREDIT CARD AND OTHER LOANS ​ The Company’s payment and lending solutions result in the generation of credit card and other loans, which are recorded at the time a borrower enters into a point-of-sale transaction with a merchant. Credit card loans represent revolving amounts due and have a range of terms that include credit limits, interest rates and fees, which can be revised over time based on new information about the cardholder, in accordance with applicable regulations and the governing terms and conditions. Cardholders choosing to make a payment of less than the full balance due, instead of paying in full, are subject to finance charges and are required to make monthly payments based on pre-established amounts. Other loans, which are primarily installment loans offered to customers, have a range of fixed terms such as interest rates, fees and repayment periods, and borrowers are required to make pre-established monthly payments over the term of the loan in accordance with the applicable terms and conditions. Credit card and other loans are presented on the Consolidated Balance Sheets net of the Allowance for credit losses, and include principal and any related accrued interest and fees. The Company continues to accrue interest and fee income on all accounts, except in limited circumstances, until the related balance and all related interest and fees are paid or charged-off; an Allowance for credit losses is established for uncollectable interest and fees. ​ Primarily, the Company classifies its credit card and other loans as held for investment. The Company sells a majority of its credit card loans originated by Comenity Bank and by Comenity Capital Bank, which together are referred to herein as the “Banks”, to securitization master trusts, which are themselves consolidated VIEs, and therefore these loans are restricted for securitization investors. All new originations of credit card and other loans are determined to be held for investment at origination because the Company has the intent and ability to hold them for the foreseeable future. In determining what constitutes the foreseeable future, the Company considers the average life and homogenous nature of its credit card and other loans. In assessing whether its credit card and other loans continue to be held for investment, the Company also considers capital levels and scheduled maturities of funding instruments used. The assertion regarding the intent and ability to hold credit card and other loans for the foreseeable future can be made with a high degree of certainty given the maturity distribution of the Company’s direct-to-consumer deposits and other funding instruments; the demonstrated ability to replace maturing time-based deposits and other borrowings with new deposits or borrowings; and historic payment activity on its credit card and other loans. Due to the homogenous nature of the Company’s credit card loans, amounts are classified as held for investment on a brand partner portfolio basis. From time to time certain credit card loans are classified as held for sale, as determined on a brand partner basis. The Company carries these assets at the lower of aggregate cost or fair value, and continues to recognize finance charges on an accrual basis. Cash flows associated with credit card and other loans originated or purchased for investment are classified as Cash flows from investing activities, regardless of any subsequent change in intent and ability. ​ ​ The following table presents the Company’s credit card and other loans, as of September 30, 2022 and December 31, 2021, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ Credit card loans ​ $ 17,863 ​ $ 17,217 Installment (other) loans ​ ​ 263 ​ ​ 182 Total credit card and other loans (1)(2) ​ ​ 18,126 ​ ​ 17,399 Less: Allowance for credit losses ​ ​ (2,073) ​ ​ (1,832) Credit card and other loans, net ​ $ 16,053 ​ $ 15,567 (1) Includes $12.6 billion and $11.2 billion of credit card and other loans available to settle obligations of consolidated VIEs as of September 30, 2022 and December 31, 2021, respectively. (2) Includes $268 million and $224 million, of accrued interest and fees that have not yet been billed to cardholders as of September 30, 2022 and December 31, 2021, respectively. ​ Credit Card and Other Loans Aging ​ An account is contractually delinquent if the Company does not receive the minimum payment due by the specified due date. The Company’s policy is to continue to accrue interest and fee income on all accounts, except in limited circumstances, until the balance and all related interest and fees are paid or charged-off. After an account becomes 30 days past due, a proprietary collection scoring algorithm automatically scores the risk of the account becoming further delinquent; based upon the level of risk indicated, a collection strategy is deployed. If after exhausting all in-house collection efforts the Company is unable to collect on the account, it may engage collection agencies or outside attorneys to continue those efforts, or sell the charged-off balances. ​ The following table presents the delinquency trends on the Company’s credit card and other loans portfolio based on the amortized cost: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Aging Analysis of Delinquent Amortized Cost Credit Card and Other Loans (1) ​ ​ ​ ​ ​ ​ ​ 31 to 60 days delinquent 61 to 90 days delinquent 91 or more days delinquent Total delinquent Current Total (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2022 $ 411 ​ $ 272 ​ $ 609 ​ $ 1,292 ​ $ 16,537 ​ $ 17,829 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2021 $ 262 ​ $ 186 ​ $ 401 ​ $ 849 ​ $ 16,284 ​ $ 17,133 (1) Installment loan delinquencies have been included with credit card loan delinquencies in the table above, as amounts were insignificant as of each period presented. As permitted by GAAP, the Company excludes unbilled finance charges from its amortized cost basis of credit card and other loans. As of September 30, 2022 and December 31, 2021, accrued interest and fees that have not yet been billed to cardholders were $268 million and $224 million, respectively, included in Credit card and other loans on the Consolidated Balance Sheets. ​ From time to time the Company may re-age cardholders’ accounts, which is intended to assist delinquent cardholders who have experienced financial difficulties but who demonstrate both an ability and willingness to repay the amounts due; this practice affects credit card loan delinquencies and principal losses. Accounts meeting specific defined criteria are re-aged when the cardholder makes one or more consecutive payments aggregating to a certain pre-defined amount of their account balance. Upon re-aging, the outstanding balance of a delinquent account is returned to current status. The Company’s re-aged accounts as a percentage of total credit card and other loans represented 1.4% for both the three months ended September 30, 2022 and 2021, and 1.5% and 1.9% for the nine months ended September 30, 2022 and 2021, respectively. The Company’s re-aging practices comply with regulatory guidelines. ​ Net Principal Losses ​ The Company’s net principal losses include the principal amount of losses that are deemed uncollectible, less recoveries, and exclude charged-off interest, fees and third-party fraud losses (including synthetic fraud). Charged-off interest and fees reduce Interest and fees on loans, while third-party fraud losses are recorded in Card and processing expenses. Credit card loans, including unpaid interest and fees, are generally charged-off in the month during which an account becomes 180 days past due. Installment loans, including unpaid interest, are generally charged-off when a loan becomes 120 days past due. However, in the case of a customer bankruptcy or death, credit card and other loans, including unpaid interest and fees as applicable, are charged-off in each month subsequent to 60 days after the receipt of notification of the bankruptcy or death, but in any case not later than 180 days past due for credit card loans and 120 days past due for installment loans. The Company records the actual losses for unpaid interest and fees as a reduction to Interest and fees on loans, which were $145 million and $91 million for the three months ended September 30, 2022 and 2021, respectively, and $429 million and $335 million for the nine months ended September 30, 2022 and 2021, respectively. ​ Modified Credit Card Loans ​ Forbearance Programs ​ As part of the Company’s collections strategy, the Company may offer temporary, short term (six-months or less) forbearance programs in order to improve the likelihood of collections and meet the needs of the Company’s customers. The Company’s modifications for customers who have requested assistance and meet certain qualifying requirements, come in the form of reduced or deferred payment requirements, interest rate reductions and late fee waivers. The Company does not offer programs involving the forgiveness of principal. These temporary loan modifications may assist in cases where the Company believes the customer will recover from the short-term hardship and resume scheduled payments. Under these forbearance modification programs, those accounts receiving relief may not advance to the next delinquency cycle, including to charge-off, in the same time frame that would have occurred had the relief not been granted. The Company evaluates its forbearance modification programs to determine if they represent a more than insignificant delay in payment, in which case they would then be considered a troubled debt restructuring (TDR). Loans in these short term programs that are determined to be TDR’s, will be included as such in the disclosures below. ​ Credit Card Loans Modified as TDRs ​ The Company considers impaired loans to be loans for which it is probable that it will be unable to collect all amounts due according to the original contractual terms of the cardholder agreement, including credit card loans modified as TDRs. In instances where cardholders are experiencing financial difficulty, the Company may modify its credit card loans with the intention of minimizing losses and improving collectability, while providing cardholders with financial relief; such credit card loans are classified as TDRs, exclusive of the forbearance programs described above. Modifications, including for temporary hardship and permanent workout programs, include concessions consisting primarily of a reduced minimum payment and an interest rate reduction. The temporary programs’ concessions remain in place for a period no longer than twelve months, while the permanent programs remain in place through the payoff of the credit card loans if the cardholder complies with the terms of the program. ​ TDR concessions do not include the forgiveness of unpaid principal, but may involve the reversal of certain unpaid interest or fee assessments, and the cardholder’s ability to make future purchases is either limited, or suspended until the cardholder successfully exits from the modification program. In accordance with the terms of the Company’s temporary hardship and permanent workout programs, the Credit Agreement reverts back to its original contractual terms (including the contractual interest rate) when the customer exits the program, which is either when all payments have been made in accordance with the program, or when the customer defaults out of the program. ​ TDRs are collectively evaluated for impairment on a pooled basis. In measuring the appropriate allowance for credit losses, these modified credit card loans are included in the general pool of credit card loans, with the allowance determined under a contingent loss model. The Company’s impaired credit card loans represented less than 2% of total credit card loans as of both September 30, 2022 and December 31, 2021. As of those same dates, the Company’s recorded investment in impaired credit card loans was $248 million and $281 million, respectively, with an associated allowance for credit losses of $62 million and $81 million, respectively. The average recorded investment in impaired credit card loans was $248 million and $339 million for the three months ended September 30, 2022 and 2021, respectively and $259 million and $412 million for the nine months ended September 30, 2022 and 2021, respectively. ​ Interest income on these impaired credit card loans is accounted for in the same manner as non-impaired credit card loans, and cash collections are allocated according to the same payment hierarchy methodology applied for credit card loans not in modification programs. The Company recognized $4 million and $5 million for the three months ended September 30, 2022 and 2021, respectively, and $11 million and $21 million for the nine months ended September 30, 2022 and 2021, respectively, in interest income associated with credit card loans in modification programs, during the period that such loans were impaired. ​ The following table provides additional information regarding credit card loans modified as TDRs during the specified periods: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2022 ​ Nine Months Ended September 30, 2022 ​ ​ ​ ​ Pre-modification ​ Post-modification ​ ​ ​ Pre-modification ​ Post-modification ​ ​ Number of ​ Outstanding ​ Outstanding ​ Number of ​ Outstanding ​ Outstanding ​ Restructurings Balance Balance Restructurings Balance Balance (Millions, except for Number of restructurings) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Troubled debt restructurings – credit card loans ​ 37,363 $ 52 $ 52 ​ 107,577 $ 154 $ 154 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 ​ ​ ​ ​ Pre-modification ​ Post-modification ​ ​ Pre-modification ​ Post-modification ​ ​ Number of ​ Outstanding ​ Outstanding ​ Number of ​ Outstanding ​ Outstanding ​ Restructurings Balance Balance Restructurings Balance Balance (Millions, except for Number of restructurings) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Troubled debt restructurings – credit card loans ​ 37,379 $ 55 $ 55 ​ 134,068 $ 200 $ 200 ​ The following table provides additional information regarding credit card loans modified as TDRs that have subsequently defaulted within 12 months of their modification dates during the specified periods; the probability of default is factored into the allowance for credit losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, 2022 ​ September 30, 2022 ​ ​ Number of ​ Outstanding Number of ​ Outstanding ​ Restructurings Balance Restructurings Balance (Millions, except for Number of restructurings) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Troubled debt restructurings that subsequently defaulted 11,511 ​ $ 16 ​ 51,201 ​ $ 70 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, 2021 ​ September 30, 2021 ​ ​ Number of ​ Outstanding Number of ​ Outstanding ​ Restructurings Balance Restructurings Balance (Millions, except for Number of restructurings) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Troubled debt restructurings that subsequently defaulted 19,888 ​ $ 27 ​ 102,624 ​ $ 136 ​ Credit Quality ​ Credit Card Loans ​ As part of the Company’s credit risk management activities, the Company assesses overall credit quality by reviewing information related to the performance of a credit cardholder’s account, as well as information from credit bureaus relating to the cardholder’s broader credit performance. The Company utilizes VantageScore (Vantage) credit scores to assist in its assessment of credit quality. Vantage credit scores are obtained at origination of the account and are refreshed monthly thereafter to assist in predicting customer behavior. The Company categorizes these Vantage credit scores into the following three credit score categories: (i) 661 or higher, which are considered the strongest credits and therefore have the lowest credit risk; (ii) 601 to 660, considered to have moderate credit risk; and (iii) 600 or less, which are considered weaker credits and therefore have the highest credit risk. In certain limited circumstances there are customer accounts for which a Vantage score is not available and the Company uses alternative sources to assess credit risk and predict behavior. The table below excludes 0.3% and 0.1% of the total credit card loans balance as of September 30, 2022 and December 31, 2021, respectively, representing those customer accounts for which a Vantage credit score is not available. The following table reflects the distribution of the Company’s credit card loans by Vantage score as of September 30, 2022 and December 31, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ ​ 2022 ​ ​ 2021 ​ ​ 661 or 601 to 600 or 661 or 601 to 600 or ​ ​ Higher ​ ​ 660 ​ ​ Less ​ ​ Higher ​ ​ 660 ​ ​ Less ​ Credit card loans ​ 60 % 27 % 13 % 62 % 26 % 12 % ​ Installment Loans ​ The amortized cost basis of the Company’s installment loans totaled $263 million and $182 million as of September 30, 2022 and December 31, 2021, respectively. As of September 30, 2022, approximately 86% of these loans were originated with customers with Fair Isaac Corporation (FICO) scores of 660 or above, and correspondingly approximately 14% of these loans were originated with customers with FICO scores below 660. Similarly, as of December 31, 2021, approximately 84% and 16% of these loans were originated with customers with FICO scores of 660 or above, and below 660, respectively. ​ Unfunded Loan Commitments ​ The Company is active in originating private label and co-brand credit cards in the United States. The Company manages potential credit risk in its unfunded lending commitments by reviewing each potential customer’s credit application and evaluating the applicant’s financial history and ability and perceived willingness to repay. Credit card loans are made primarily on an unsecured basis. Cardholders reside throughout the United States and are not significantly concentrated in any one area. ​ The Company manages its potential risk in credit commitments by limiting the total amount of credit, both by individual customer and in total, by monitoring the size and maturity of its portfolios and applying consistent underwriting standards. The Company has the unilateral ability to cancel or reduce unused credit card lines at any time. Unused credit card lines available to cardholders totaled approximately $114.2 billion and $112.1 billion as of September 30, 2022 and December 31, 2021, respectively. While this amount represented the total available unused credit card lines, the Company has not experienced and does not anticipate that all cardholders will access their entire available line at any given point in time. ​ Portfolio Sales ​ In August 2021, the Company sold a credit card portfolio for cash consideration of approximately $512 million and recognized a gain of approximately $10 million on the transaction, which was recorded in Other non-interest income. ​ As of September 30, 2022 and December 31, 2021, there were no credit card loans held for sale and no portfolio sales were made during the nine months ended September 30, 2022. ​ Portfolio Acquisitions ​ In April 2022, the Company acquired a credit card portfolio for cash consideration of approximately $249 million, which primarily consisted of credit card loans, and also included intangible assets (primarily purchased credit card relationships) and rewards liabilities, and is subject to customary purchase price adjustments. ​ In October 2022, the Company acquired a credit card portfolio for cash consideration of approximately $1.6 billion, which primarily consisted of credit card loans, and also included intangible assets (primarily purchased credit card relationships) and reward liabilities, and is subject to customary purchase price adjustments.

ALLOWANCE FOR CREDIT LOSSES

ALLOWANCE FOR CREDIT LOSSES	9 Months Ended
	Sep. 30, 2022
ALLOWANCE FOR CREDIT LOSSES
ALLOWANCE FOR CREDIT LOSSES	3. ALLOWANCE FOR CREDIT LOSSES ​ The allowance for credit losses is an estimate of expected credit losses, measured over the estimated life of its credit card and other loans that considers forecasts of future economic conditions in addition to information about past events and current conditions. The estimate under the credit reserving methodology referred to as the Current Expected Credit Loss (CECL) model is significantly influenced by the composition, characteristics and quality of the Company’s portfolio of credit card and other loans, as well as the prevailing economic conditions and forecasts utilized. The estimate of the allowance for credit losses includes an estimate for uncollectible principal as well as unpaid interest and fees. Principal losses, net of recoveries are deducted from the allowance. Principal losses for unpaid interest and fees as well as any adjustments to the allowance associated with unpaid interest and fees are recorded as a reduction to Interest and fees on loans. The allowance is maintained through an adjustment to the Provision for credit losses and is evaluated for appropriateness. ​ In estimating its allowance for credit losses, for each identified group, management utilizes various models and estimation techniques based on historical loss experience, current conditions, reasonable and supportable forecasts and other relevant factors. These models utilize historical data and applicable macroeconomic variables with statistical analysis and behavioral relationships with credit performance. The Company’s quantitative estimate of expected credit losses under CECL is impacted by certain forecasted economic factors. The Company considers the forecast used to be reasonable and supportable over the estimated life of the credit card and other loans, with no reversion period. In addition to the quantitative estimate of expected credit losses, the Company also incorporates qualitative adjustments for certain factors such as Company-specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the Allowance for credit losses reflects the Company’s best estimate of current expected credit losses. ​ Credit Card Loans ​ The Company uses a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. The Company has evaluated multiple risk characteristics across its credit card loans portfolio, and determined delinquency status and credit quality to be the most significant characteristics for estimating expected credit losses. To estimate its Allowance for credit losses, the Company segments its credit card loans on the basis of delinquency status, credit quality risk score and product. These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. In determining the estimated life of the Company’s credit card loans, payments were applied to the measurement date balance with no payments allocated to future purchase activity. The Company uses a combination of First In First Out (FIFO) and the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act) methodology to model balance paydown. ​ Installment Loans ​ The Company measures its allowance for credit losses on installment loans using a statistical model to estimate projected losses over the remaining terms of the loans, inclusive of an assumption for prepayments. The model is based on the historical statistical relationship between loan loss performance and certain macroeconomic data pooled based on credit quality risk score, term of the underlying loans, vintage and geographic location. As of September 30, 2022 and December 31, 2021, the Allowance for credit losses on installment loans was $19 million and $14 million, respectively. ​ Allowance for Credit Losses Rollforward ​ The following table presents the Company’s Allowance for credit losses for its credit card and other loans. With the acquisition of Lon, Inc. in December 2020, the Company acquired certain installment loans which represented a separate portfolio segment; the amount of the related Allowance for credit losses is insignificant and therefore has been included in the table below. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2022 2021 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 1,992 ​ $ 1,635 ​ $ 1,832 ​ $ 2,008 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision for credit losses (1) ​ 304 ​ 161 ​ 902 ​ 180 ​ Net principal losses (2) ​ (223) ​ (151) ​ (661) ​ (543) ​ Ending balance ​ $ 2,073 ​ $ 1,645 ​ $ 2,073 ​ $ 1,645 ​ (1) Provision for credit losses includes a build/release for the allowance, as well as replenishment of Net principal losses. (2) Net principal losses are presented net of recoveries of $47 million and $36 million for the three months ended September 30, 2022 and 2021, respectively, and $126 million and $128 million for the nine months ended September 30, 2022 and 2021, respectively. Net principal losses for both the three and nine months ended September 30, 2022 include a $5 million adjustment related to the effects of the purchase of previously written-off accounts that were sold to a third-party debt collection agency; no such adjustment was made in the comparative periods. ​ For the three and nine months ended September 30, 2022, the factors that influenced the increase in the Allowance for credit losses are the current year periods economic scenario weightings in the Company’s credit reserve modeling, reflecting an increasing probability of a recession, more persistent inflation, and the increased cost of overall consumer debt.

SECURITIZATIONS

SECURITIZATIONS	9 Months Ended
	Sep. 30, 2022
SECURITIZATIONS
SECURITIZATIONS	4. SECURITIZATIONS ​ The Company accounts for transfers of financial assets as either sales or financings. Transfers of financial assets that are accounted for as sales are removed from the Consolidated Balance Sheets with any realized gain or loss reflected in the Consolidated Statements of Income during the period in which the sale occurs. Transfers of financial assets that are not accounted for as a sale are treated as a financing. ​ The Company regularly securitizes the majority of its credit card loans through the transfer of those loans to one of its master trusts (the Trusts). The Company performs the decision making for the Trusts, as well as servicing the cardholder accounts that generate the credit card loans held by the Trusts. In its capacity as a servicer, the Company administers the loans, collects payments and charges-off uncollectible balances. Servicing fees are earned by a subsidiary of the Company, which are eliminated in consolidation. ​ The Trusts are consolidated VIEs because they have insufficient equity at risk to finance their activities – being the issuance of debt securities and notes, collateralized by the underlying credit card loans. Because the Company performs the decision making and servicing for the Trusts, it has the power to direct the activities that most significantly impact the Trusts’ economic performance (the collection of the underlying credit card loans). In addition, the Company holds all of the variable interests in the Trusts, with the exception of the liabilities held by third-parties. These variable interests provide the Company with the right to receive benefits and the obligation to absorb losses, which could be significant to the Trusts. As a result of these considerations, the Company is deemed to be the primary beneficiary of the Trusts and therefore consolidates the Trusts. ​ The Trusts issue debt securities and notes, which are non-recourse to the Company. The collections on the securitized credit card loans held by the Trusts are available only for payment of those debt securities and notes, or other obligations arising in the securitization transactions. For its securitized credit card loans, during the initial phase of a securitization reinvestment period, the Company generally retains principal collections in exchange for the transfer of additional credit card loans into the securitized pool of assets. During the amortization or accumulation period of a securitization, the investors’ share of principal collections (in certain cases, up to a maximum specified amount each month) is either distributed to the investors or held in an account until it accumulates to the total amount due, at which time it is paid to the investors in a lump sum. ​ The Company is required to maintain minimum interests in its Trusts ranging from 4% to 10% of the securitized credit card loans. This requirement is met through a transferor’s interest and is supplemented through excess funding deposits which represent cash amounts deposited with the trustee of the securitizations. Cash collateral, restricted deposits are generally released proportionately as investors are repaid. Under the terms of the Trusts, the occurrence of certain triggering events associated with the performance of the securitized credit card loans in each Trust could result in certain required actions, including payment of Trust expenses, the establishment of reserve funds, or early amortization of the debt securities and/or notes, in a worst-case scenario. During the three and nine months ended September 30, 2022 and 2021, no such triggering events occurred. ​ The following tables provide the total securitized credit card loans and related delinquencies, and net principal losses of securitized credit card loans for the periods specified: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ Total credit card loans – available to settle obligations of consolidated VIEs ​ $ 12,570 ​ $ 11,215 Of which: principal amount of credit card loans 91 days or more past due ​ $ 239 ​ $ 159 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2022 2021 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net principal losses of securitized credit card loans ​ $ 123 ​ $ 91 ​ $ 363 ​ $ 347 ​

INVESTMENT SECURITIES

INVESTMENT SECURITIES	9 Months Ended
	Sep. 30, 2022
INVESTMENT SECURITIES
INVESTMENT SECURITIES	5. INVESTMENT SECURITIES ​ The Company’s investment securities consist of available-for-sale (AFS) securities, which are debt securities, U.S. Treasury bonds and mutual funds. The Company also holds equity securities within its investment securities portfolio. Collectively, these investments are carried at fair value on the Consolidated Balance Sheets within Investment securities. ​ For any AFS debt securities in an unrealized loss position, the CECL methodology requires estimation of the lifetime expected credit losses which then would be recognized in the Consolidated Statements of Income by establishing, or adjusting an existing allowance for those credit losses. The Company did not have any such credit losses for the periods presented. Any unrealized gains, or any portion of a security’s non-credit-related unrealized losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. The Company typically invests in highly-rated securities with low probabilities of default. ​ Gains and losses on investments in equity securities are recorded in Other non-interest expenses in the Consolidated Statements of Income. ​ Realized gains and losses are recognized upon disposition of the investment securities, using the specific identification method. The table below reflects unrealized gains and losses as of September 30, 2022 and December 31, 2021, respectively: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ December 31, 2021 ​ Amortized Unrealized Unrealized ​ ​ Amortized Unrealized Unrealized ​ ​ ​ Cost Gains Losses Fair Value Cost Gains Losses Fair Value (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale securities ​ $ 175 ​ $ — ​ $ (24) ​ $ 151 ​ $ 173 ​ $ 4 ​ $ (2) ​ $ 175 Equity securities ​ ​ 67 ​ ​ — ​ ​ — ​ ​ 67 ​ ​ 64 ​ ​ — ​ ​ — ​ ​ 64 Total ​ $ 242 ​ $ — ​ $ (24) ​ $ 218 ​ $ 237 ​ $ 4 ​ $ (2) ​ $ 239 ​ The following table provides information about the Company’s AFS debt securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position, as of September 30, 2022 and December 31, 2021, respectively. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ ​ Less than 12 months ​ 12 Months or Greater ​ Total ​ ​ ​ Unrealized ​ ​ Unrealized ​ ​ Unrealized ​ Fair Value Losses Fair Value Losses Fair Value Losses (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale securities ​ $ 105 ​ $ (13) ​ $ 46 ​ $ (11) ​ $ 151 ​ $ (24) Total ​ $ 105 ​ $ (13) ​ $ 46 ​ $ (11) ​ $ 151 ​ $ (24) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ Less than 12 months ​ 12 Months or Greater ​ Total ​ ​ ​ Unrealized ​ ​ Unrealized ​ ​ Unrealized ​ Fair Value Losses Fair Value Losses Fair Value Losses (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale securities ​ $ 57 ​ $ (1) ​ $ 15 ​ $ (1) ​ $ 72 ​ $ (2) Total ​ $ 57 ​ $ (1) ​ $ 15 ​ $ (1) ​ $ 72 ​ $ (2) ​ As of September 30, 2022, the amortized cost and estimated fair value of the Company’s AFS debt securities, which are mortgage-backed securities with no stated maturities, was $175 million and $151 million, respectively. ​ There were no realized gains or losses from the sale of any investment securities for the three and nine months ended September 30, 2022 and 2021.

DEPOSITS

DEPOSITS	9 Months Ended
	Sep. 30, 2022
DEPOSITS.
DEPOSITS	6. DEPOSITS ​ As of September 30, 2022 and December 31, 2021, deposits were categorized as interest-bearing or non-interest-bearing as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ Interest-bearing ​ $ 12,407 ​ $ 11,027 Non-interest-bearing (including cardholder credit balances) ​ ​ 37 ​ ​ — Total deposits ​ $ 12,444 ​ $ 11,027 ​ Deposits by deposit type as of September 30, 2022 and December 31, 2021 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ Savings accounts ​ ​ ​ ​ ​ ​ Direct-to-consumer (retail) ​ $ 2,901 ​ $ 1,713 Wholesale ​ ​ 3,809 ​ ​ 3,873 Certificates of deposit ​ ​ ​ ​ ​ ​ Direct-to-consumer (retail) ​ ​ 2,275 ​ ​ 1,467 Wholesale ​ ​ 3,422 ​ ​ 3,974 Cardholder credit balances ​ ​ 37 ​ ​ — Total deposits ​ $ 12,444 ​ $ 11,027 ​ ​ The scheduled maturities of certificates of deposit as of September 30, 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ (Millions) ​ ​ ​ 2022 (1) ​ $ 255 2023 ​ 3,270 2024 ​ 1,268 2025 ​ 412 2026 ​ 196 Thereafter ​ 296 Total certificates of deposit ​ ​ 5,697 (1) The 2022 balance includes $8 million in unamortized debt issuance costs, which are associated with the entire portfolio of certificates of deposit. ​ As of September 30, 2022 and December 31, 2021, certificates of deposit that exceeded applicable FDIC insurance limits, which are generally $250,000 or more, in the aggregate, were $711 million and $500 million, respectively.

OTHER NON-INTEREST INCOME AND O

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES	9 Months Ended
	Sep. 30, 2022
OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES
OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES	7. OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES ​ The following table provides the components of Other non-interest income: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payment protection products ​ $ 39 ​ $ 35 ​ $ 116 ​ $ 103 Loss from equity method investment ​ ​ (11) ​ ​ — ​ ​ (44) ​ ​ — Other ​ 2 ​ 10 ​ 3 ​ 11 Total other non-interest income ​ $ 30 ​ $ 45 ​ $ 75 ​ $ 114 ​ The following table provides the components of Other non-interest expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Professional services and regulatory fees ​ $ 33 ​ $ 40 ​ $ 102 ​ $ 105 Occupancy expense ​ ​ 5 ​ ​ 6 ​ ​ 17 ​ ​ 21 Other (1) ​ ​ 16 ​ ​ 24 ​ ​ 48 ​ ​ 55 Total other non-interest expenses ​ $ 54 ​ $ 70 ​ $ 167 ​ $ 181 ​ (1) Primarily related to costs associated with various other individually insignificant operating activities.

FAIR VALUES OF FINANCIAL INSTRU

FAIR VALUES OF FINANCIAL INSTRUMENTS	9 Months Ended
	Sep. 30, 2022
FAIR VALUES OF FINANCIAL INSTRUMENTS
FAIR VALUES OF FINANCIAL INSTRUMENTS	8. FAIR VALUES OF FINANCIAL INSTRUMENTS ​ Fair value is defined under GAAP as the price that would be required to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; with such transaction based on the principal market, or in the absence of a principal market the most advantageous market for the specific instrument. GAAP provides for a three-level fair value hierarchy that classifies the inputs to valuation techniques used to measure fair value, defined as follows: ​ Level 1: ​ Level 2: ​ Level 3: ​ The Company monitors the market conditions and evaluates the fair value hierarchy levels quarterly. For the three and nine months ended September 30, 2022 and 2021, there were no transfers into or out of Level 3, and no transfers between Levels 1 and 2. ​ The following table summarizes the carrying values and fair values of the Company’s financial assets and financial liabilities: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ December 31, 2021 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ Amount Value Amount Value (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit card and other loans, net ​ $ 16,053 ​ $ 18,279 ​ $ 15,567 ​ $ 17,989 Investment securities ​ 218 ​ 218 ​ 239 ​ 239 Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ 12,444 ​ 12,351 ​ 11,027 ​ 11,135 Debt issued by consolidated VIEs ​ 4,015 ​ 4,015 ​ 5,453 ​ 5,467 Long-term and other debt ​ 1,916 ​ 1,770 ​ 1,986 ​ 2,053 ​ Valuation Techniques Used in the Fair Value Measurement of Financial Assets and Financial Liabilities ​ Credit card and other loans, net: The Company’s Credit card and other loans are recorded at historical cost, less an allowance for credit losses, on the Consolidated Balance Sheets. In estimating the fair values, the Company uses a discounted cash flow model (i.e., Level 3 inputs), primarily because a comparable whole loan sales market for similar loans does not exist, and therefore there is a lack of observable pricing inputs. The Company uses various internally derived inputs, including projected income, discount rates and forecasted write-offs; economic value attributable to future loans generated by the cardholder accounts is not included in the fair values. ​ Investment securities: ​ Deposits: ​ Debt issued by consolidated VIEs: ​ Long-term and other debt: ​ The following tables summarize the Company’s financial assets and financial liabilities measured at fair value on a recurring basis, categorized by the fair value hierarchy described in the preceding paragraphs: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ Total Level 1 Level 2 Level 3 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment securities ​ $ 218 ​ $ 43 ​ $ 175 ​ $ — Total assets measured at fair value ​ $ 218 ​ $ 43 ​ $ 175 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Total Level 1 Level 2 Level 3 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment securities ​ $ 239 ​ $ 48 ​ $ 191 ​ $ — Total assets measured at fair value ​ $ 239 ​ $ 48 ​ $ 191 ​ $ — ​ Financial Instruments Disclosed but Not Carried at Fair Value ​ The following tables summarize the Company’s financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of September 30, 2022 and December 31, 2021 respectively. The fair values of these financial instruments are estimates as of September 30, 2022 and December 31, 2021, and require management’s judgment; therefore, these figures may not be indicative of future fair values, nor can the fair value of the Company be estimated by aggregating all of the amounts presented. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ Fair Value Level 1 Level 2 Level 3 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit card and other loans, net ​ $ 18,279 ​ $ — ​ $ — ​ $ 18,279 Total ​ $ 18,279 ​ $ — ​ $ — ​ $ 18,279 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ $ 12,351 ​ $ — ​ $ 12,351 ​ $ — Debt issued by consolidated VIEs ​ 4,015 ​ — ​ 4,015 ​ — Long-term and other debt ​ 1,770 ​ — ​ 1,770 ​ — Total ​ $ 18,136 ​ $ — ​ $ 18,136 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Fair Value Level 1 Level 2 Level 3 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit card and other loans, net ​ $ 17,989 ​ $ — ​ $ — ​ $ 17,989 Total ​ $ 17,989 ​ $ — ​ $ — ​ $ 17,989 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ $ 11,135 ​ $ — ​ $ 11,135 ​ $ — Debt issued by consolidated VIEs ​ 5,467 ​ — ​ 5,467 ​ — Long-term and other debt ​ 2,053 ​ — ​ 2,053 ​ — Total ​ $ 18,655 ​ $ — ​ $ 18,655 ​ $ — ​ Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis ​ Certain assets and liabilities are recognized or disclosed at fair value on a nonrecurring basis, including property and equipment, right-of-use assets, deferred contract assets, goodwill, and intangible assets. These assets are not measured at fair value on a recurring basis but are subject to fair value adjustments in certain circumstances, such as upon impairment. The Company recognized a write-down of its equity method investment in Loyalty Ventures Inc. (LVI) of $11 million and $44 million during the three and nine months ended September 30, 2022, respectively. The fair value and carrying amount of its investment was $6 million as of September 30, 2022

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2022
COMMITMENTS AND CONTINGENCIES.
COMMITMENTS AND CONTINGENCIES	9. COMMITMENTS AND CONTINGENCIES ​ Regulatory Matters ​ Comenity Bank is regulated, supervised and examined by the State of Delaware and the Federal Deposit Insurance Corporation (FDIC). The Company’s industrial bank, Comenity Capital Bank, is regulated, supervised and examined by the State of Utah and the FDIC. ​ The Consumer Financial Protection Bureau (CFPB) promulgates regulations for the federal consumer financial protection laws. Banks in a multi-bank organization, such Comenity Bank and Comenity Capital Bank, are subject to supervision and examination by the CFPB with respect to the federal consumer financial protection laws if at least one bank reports total assets over $10 billion for four consecutive quarters. ​ Quantitative measures established by regulations to ensure capital adequacy require Comenity Bank and Comenity Capital Bank to maintain minimum amounts and ratios of Tier 1 capital to average assets, Common equity tier 1, Tier 1 capital and Total capital, all to risk weighted assets. Failure to meet these minimum capital requirements can result in certain mandatory, and possibly additional discretionary actions by the Banks’ regulators that if undertaken, could have a direct material effect on Comenity Bank’s and/or Comenity Capital Bank’s operating activities, as well as those of the Company. Based on these regulations, as of September 30, 2022, each Bank met all capital requirements to which it was subject, and maintained capital ratios in excess of the minimums required to qualify as well capitalized. ​ ​ The actual capital ratios and minimum ratios for each Bank, as well as the Combined Banks, as of September 30, 2022, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Minimum Ratio to be ​ ​ ​ Minimum Ratio for ​ Well Capitalized under ​ Actual ​ Capital Adequacy ​ Prompt Corrective ​ Ratio ​ Purposes ​ Action Provisions Comenity Bank ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Equity Tier 1 capital ratio (1) ​ 25.6 % ​ 4.5 % ​ 6.5 % Tier 1 capital ratio (2) ​ 25.6 ​ ​ 6.0 ​ ​ 8.0 ​ Total Risk-based capital ratio (3) ​ 26.9 ​ ​ 8.0 ​ ​ 10.0 ​ Tier 1 Leverage capital ratio (4) ​ 20.4 ​ ​ 4.0 ​ ​ 5.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comenity Capital Bank ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Equity Tier 1 capital ratio (1) ​ 18.4 % ​ 4.5 % ​ 6.5 % Tier 1 capital ratio (2) ​ 18.4 ​ ​ 6.0 ​ ​ 8.0 ​ Total Risk-based capital ratio (3) ​ 19.7 ​ ​ 8.0 ​ ​ 10.0 ​ Tier 1 Leverage capital ratio (4) ​ 16.1 ​ ​ 4.0 ​ ​ 5.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Combined Banks ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Equity Tier 1 capital ratio (1) ​ 21.4 % ​ 4.5 % ​ 6.5 % Tier 1 capital ratio (2) ​ 21.4 ​ ​ 6.0 ​ ​ 8.0 ​ Total Risk-based capital ratio (3) ​ 22.8 ​ ​ 8.0 ​ ​ 10.0 ​ Tier 1 Leverage capital ratio (4) ​ 18.0 ​ ​ 4.0 ​ ​ 5.0 ​ (1) The Common Equity Tier 1 capital ratio represents common equity tier 1 capital divided by total risk-weighted assets. (2) The Tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets. (3) The Total Risk-based capital ratio represents total capital divided by total risk-weighted assets. (4) The Tier 1 Leverage capital ratio represents tier 1 capital divided by total average assets, after certain adjustments. ​ Indemnification ​ On July 1, 2019, the Company completed the sale of its Epsilon segment to Publicis Groupe S.A. (Publicis). Under the terms of the agreement governing that transaction, the Company agreed to indemnify Publicis and its affiliates from and against any losses arising out of or related to a United States Department of Justice (DOJ) investigation. The DOJ investigation related to third-party marketers who sent, or allegedly sent, deceptive mailings and the provision of data and services to those marketers by Epsilon’s data practice. Epsilon actively cooperated with the DOJ in connection with the investigation. On January 19, 2021, Epsilon entered into a deferred prosecution agreement (DPA) with the DOJ to resolve the matters that were the subject of the investigation. Pursuant to the DPA, Epsilon agreed, among other things, to pay penalties and consumer compensation in the aggregate amount of $150 million, to be paid in two equal installments, the first in January 2021 and the second in January 2022. A $150 million loss contingency was recorded as of December 31, 2020. The Company paid $75 million to Publicis pursuant to its contractual indemnification obligation in January 2021. In January 2022, the Company paid the second remaining $75 million installment to Publicis pursuant to its contractual indemnification obligation. ​ Legal Proceedings ​ From time to time the Company is involved in various claims and lawsuits and other proceedings, arising in the ordinary course of business that it believes will not have a material adverse effect on its business, consolidated financial condition or liquidity, including claims and lawsuits alleging breaches of the Company’s contractual obligations, arbitrations, class actions and other litigation, arising in connection with its business activities. The Company is also involved, from time to time, in reviews, investigations, subpoenas and other proceedings (both formal and informal) by governmental agencies regarding its business (collectively, “regulatory matters”), which could subject the Company to significant fines, penalties, obligations to change its business practices or other requirements resulting in increased expenses, diminished income and damage to the Company’s reputation.

CHANGES IN ACCUMULATED OTHER CO

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS	9 Months Ended
	Sep. 30, 2022
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS	10. CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS ​ The changes in each component of accumulated other comprehensive loss, net of tax effects, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Unrealized ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Net Unrealized ​ Gains (Losses) ​ Gains (Losses) ​ Currency ​ Other ​ Losses on on Cash on Net Translation Comprehensive Three Months Ended September 30, 2022 AFS Securities Flow Hedges Investment Hedge Adjustments Loss (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of June 30, 2022 $ (11) $ — $ — $ (3) $ (14) Changes in other comprehensive loss ​ ​ (7) ​ ​ — ​ ​ — ​ ​ — ​ ​ (7) Balance as of September 30, 2022 $ (18) $ — $ — $ (3) $ (21) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ Accumulated ​ ​ Net Unrealized ​ Net Unrealized ​ Net Unrealized ​ Currency ​ Other ​ Gains (Losses) Gains on Cash Losses on Net Translation Comprehensive Three Months Ended September 30, 2021 on AFS Securities Flow Hedges Investment Hedge Adjustments (1) Loss (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of June 30, 2021 $ 14 $ — $ (7) $ (40) $ (33) Changes in other comprehensive (loss) income ​ ​ (4) ​ ​ 1 ​ ​ — ​ ​ (20) ​ ​ (23) Balance as of September 30, 2021 $ 10 $ 1 $ (7) $ (60) $ (56) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Unrealized ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Net Unrealized ​ Gains (Losses) ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ on Net ​ Translation ​ Comprehensive Nine Months Ended September 30, 2022 on AFS Securities Flow Hedges Investment Hedge Adjustments Loss (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2021 $ 1 $ — $ — $ (3) $ (2) Changes in other comprehensive loss ​ ​ (19) ​ ​ — ​ ​ — ​ ​ — ​ ​ (19) Balance as of September 30, 2022 $ (18) $ — $ — $ (3) $ (21) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Unrealized ​ ​ ​ Foreign ​ Accumulated ​ ​ Net Unrealized ​ (Losses) Gains ​ Net Unrealized ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Losses on Net ​ Translation ​ Comprehensive Nine Months Ended September 30, 2021 on AFS Securities Flow Hedges Investment Hedge Adjustments (1) Loss (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2020 $ 23 $ (1) $ (7) $ (20) $ (5) Changes in other comprehensive (loss) income ​ ​ (13) ​ ​ 2 ​ ​ — ​ ​ (40) ​ ​ (51) Balance as of September 30, 2021 $ 10 $ 1 $ (7) $ (60) $ (56) (1) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates from the Company’s LoyaltyOne segment, which was spun off in November 2021.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2022
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	11. STOCKHOLDERS’ EQUITY ​ Stock Repurchase Programs ​ On February 28, 2022, the Company’s Board of Directors approved a stock repurchase program to acquire up to 200,000 shares of the Company’s outstanding common stock in the open market during the one-year period ending on February 28, 2023. As of September 30, 2022, the Company repurchased all 200,000 shares of its common stock available under this program for an aggregate of $12 million. Following their repurchase, these 200,000 shares ceased to be outstanding shares of common stock and are now treated as authorized but unissued shares of common stock. ​ During the nine months ended September 30, 2021, the Company did not repurchase any shares of its common stock. ​ Stock Compensation Expense ​ During the nine months ended September 30, 2022, the Company awarded 664,655 service-based restricted stock units with a weighted average grant date fair value per share of $66.76 as determined on the date of grant. Service-based restricted stock units typically vest ratably over three years provided that the participant is employed by the Company on each such vesting date. ​ During the nine months ended September 30, 2022, the Company awarded 82,513 performance-based restricted stock units with pre-defined vesting criteria that permit a range from 0% to 150% to be earned. The fair market value of these awards is $72.42. If the performance targets are met, the restrictions will lapse (i.e., the awards will vest) with respect to the entire award ​ For the three months ended September 30, 2022 and 2021, the Company recognized $8 million and $7 million in stock-based compensation expense, respectively. For the nine months ended September 30, 2022 and 2021, the Company recognized $24 million and $20 million in stock-based compensation expense, respectively. ​ Dividends ​ During the three and nine months ended September 30, 2022, the Company paid $10 million and $32 million, respectively, in dividends to its shareholders of common stock. On October 27, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.21 per share on its common stock, payable on December 16, 2022, to stockholders of record at the close of business on November 14, 2022. ​ ​

INCOME TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2022
INCOME TAXES
INCOME TAXES	12. INCOME TAXES ​ The effective tax rate was 28.9% and 20.7% for the three months ended September 30, 2022 and 2021, respectively, and 29.5% and 24.8% for the nine months ended September 30, 2022 and 2021, respectively. The increase in the effective tax rate for the three month period primarily related to increases in nondeductible items over those in the prior year period and greater discrete tax benefits recorded in the prior year period. Increases in nondeductible items over those in the prior year period, and greater discrete tax benefits recorded in the prior year, as well as a decrease in Income from continuing operations before income taxes, drove the increase in the effective tax rate for the nine month period. ​ On August 16, 2022, the Inflation Reduction Act (the Act) was signed into law in the United States of America. The Company is evaluating the Act and does not anticipate a significant impact on its financial position, results of operations or cash flows, nor does it expect significant changes to accounting policies, business processes or internal controls as a result of the Act. ​ The Company is under examination by the Internal Revenue Service as well as tax authorities in various states. The tax years under examination and open for examination vary by jurisdiction, but with some exceptions, the tax returns filed by the Company are no longer subject to U.S. federal income tax and state and local examinations for the years before 2015 or foreign income tax examinations for years before 2018.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2022
EARNINGS PER SHARE
EARNINGS PER SHARE	13. EARNINGS PER SHARE ​ The following table sets forth the computation of basic and diluted EPS attributable to common stockholders for the three and nine months ended September 30, 2022 and 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2022 2021 2022 2021 (Millions, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Numerator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 134 ​ $ 206 ​ $ 358 ​ $ 737 Income (loss) from discontinued operations, net of income taxes ​ ​ — ​ ​ 18 ​ ​ (1) ​ ​ 46 Net income ​ $ 134 ​ $ 224 ​ $ 357 ​ $ 783 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic: Weighted average common stock ​ 49.8 ​ 49.8 ​ 49.9 ​ 49.7 Weighted average effect of dilutive securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Add: net effect of dilutive unvested restricted stock awards (1) ​ 0.1 ​ 0.2 ​ 0.1 ​ 0.3 Diluted ​ 49.9 ​ 50.0 ​ 50.0 ​ 50.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2.69 ​ $ 4.14 ​ $ 7.17 ​ $ 14.81 Income (loss) from discontinued operations ​ $ — ​ $ 0.36 ​ $ (0.01) ​ $ 0.94 Net income per share ​ $ 2.69 ​ $ 4.50 ​ $ 7.16 ​ $ 15.75 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2.69 ​ $ 4.11 ​ $ 7.16 ​ $ 14.74 Income (loss) from discontinued operations ​ $ — ​ $ 0.36 ​ $ (0.01) ​ $ 0.94 Net income per share ​ $ 2.69 ​ $ 4.47 ​ $ 7.15 ​ $ 15.68 (1) For the three and nine months ended September 30, 2022 and 2021, an insignificant amount of restricted stock awards were excluded from each calculation of weighted average dilutive common shares as the effect would have been anti-dilutive.

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	9 Months Ended
	Sep. 30, 2022
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS	14. DISCONTINUED OPERATIONS ​ LoyaltyOne ​ On November 5, 2021, the separation of LVI from the Company was completed after market close (the Separation). The Separation, which has been classified as discontinued operations, was achieved through the Company’s distribution of 81% of the shares of LVI common stock to holders of the Company’s common stock as of the close of business on the record date of October 27, 2021. The Company’s stockholders of record received one share of LVI common stock for every two ​ The Company accounts for its 19% ownership interest in LVI following the equity method of accounting. As of September 30, 2022, the carrying amount of the Company’s ownership interest in LVI, which investment totaled was $6 million, and is included in Other assets in the Consolidated Balance Sheet. ​ ​ The following table summarizes the results of operations of the Company’s former LoyaltyOne segment, direct costs identifiable to the LoyaltyOne segment, and the allocation of interest expense on corporate debt, for the three and nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2021 ​ Nine Months Ended September 30, 2021 ​ (Millions) ​ ​ ​ ​ ​ ​ ​ Total interest income ​ $ — ​ $ — ​ Total interest expense (1) ​ ​ 3 ​ ​ 10 ​ Net interest income ​ ​ (3) ​ ​ (10) ​ Total non-interest income ​ ​ 169 ​ ​ 497 ​ Total non-interest expenses ​ ​ 134 ​ ​ 410 ​ Income before provision from income taxes ​ ​ 32 ​ ​ 77 ​ Provision for income taxes ​ ​ 14 ​ ​ 30 ​ Income from discontinued operations, net of income taxes ​ $ 18 ​ $ 47 ​ (1) The Company’s Credit Agreement, as amended, required a $725 million prepayment of term loans in conjunction with the LoyaltyOne spinoff. As a result, the interest expense reflected above is the allocation to discontinued operations of interest on the basis of this $725 million mandatory prepayment. ​ The following table summarizes the depreciation and amortization, and capital expenditures of the Company’s former LoyaltyOne segment for the three and nine months ended September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Millions) ​ Three Months Ended September 30, 2021 ​ Nine Months Ended September 30, 2021 ​ Depreciation and amortization ​ $ 9 ​ $ 28 ​ Capital expenditures ​ $ 4 ​ $ 13 ​ ​

DESCRIPTION OF BUSINESS AND B_2

DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION (Policies)	9 Months Ended
	Sep. 30, 2022
DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
BASIS OF PRESENTATION	BASIS OF PRESENTATION ​ The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). For purposes of comparability, certain prior period amounts have been reclassified to conform to the current presentation, in particular, as a result of the spinoff of its LoyaltyOne segment and its classification as discontinued operations, the Company has adjusted the presentation of its Consolidated Financial Statements from its historical approach under SEC Regulation S-X Article 5, which is broadly applicable to all “commercial and industrial companies,” to Article 9, which is applicable to “bank holding companies.” While neither BFH nor any of its subsidiaries is considered a “bank” within the meaning of the Bank Holding Company Act, the changes from the historical presentation, to the bank holding company presentation, the most significant of which reflect a reclassification of Interest expense within Net interest income, are intended to reflect the Company’s operations going forward and better align the Company with its peers for comparability purposes. ​ The unaudited Condensed Consolidated Financial Statement should be read in conjunction with the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, filed with the Securities and Exchange Commission on February 25, 2022; if not significantly different, certain note disclosures included therein have been omitted from these unaudited Condensed Consolidated Financial Statements. ​ The unaudited Condensed Consolidated Financial Statements included herein reflect all adjustments, which consist of normal, recurring adjustments that are, in the opinion of management, necessary to state fairly the results for the interim periods presented. Results of operations reported for interim periods are not necessarily indicative of results for the entire year. ​ The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosures of contingent assets and liabilities. These accounting estimates and assumptions reflect the best judgement of management, but actual results could differ. The most significant of those estimates and assumptions relate to the Company’s Allowance for credit losses. ​ The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of the Company and all subsidiaries in which the Company has a controlling financial interest. All intercompany transactions have been eliminated.
RECENTLY ISSUED ACCOUNTING STANDARDS	RECENTLY ISSUED ACCOUNTING STANDARDS ​ In March 2022, the Financial Accounting Standards Board issued new accounting and disclosure guidance for troubled debt restructurings effective January 1, 2023, with early adoption permitted. Specifically, the new guidance eliminates the previous recognition and measurement guidance for troubled debt restructurings while enhancing the disclosure requirements for certain loan modifications, including requiring disclosure of gross principal losses by year of loan origination. The Company is evaluating the new guidance and any impacts on its financial position, results of operations and regulatory risk-based capital, none of which are expected to be material, along with any anticipated impacts on its operational processes, controls and governance.
Credit Card and Other Loans	The Company’s payment and lending solutions result in the generation of credit card and other loans, which are recorded at the time a borrower enters into a point-of-sale transaction with a merchant. Credit card loans represent revolving amounts due and have a range of terms that include credit limits, interest rates and fees, which can be revised over time based on new information about the cardholder, in accordance with applicable regulations and the governing terms and conditions. Cardholders choosing to make a payment of less than the full balance due, instead of paying in full, are subject to finance charges and are required to make monthly payments based on pre-established amounts. Other loans, which are primarily installment loans offered to customers, have a range of fixed terms such as interest rates, fees and repayment periods, and borrowers are required to make pre-established monthly payments over the term of the loan in accordance with the applicable terms and conditions. Credit card and other loans are presented on the Consolidated Balance Sheets net of the Allowance for credit losses, and include principal and any related accrued interest and fees. The Company continues to accrue interest and fee income on all accounts, except in limited circumstances, until the related balance and all related interest and fees are paid or charged-off; an Allowance for credit losses is established for uncollectable interest and fees. ​ Primarily, the Company classifies its credit card and other loans as held for investment. The Company sells a majority of its credit card loans originated by Comenity Bank and by Comenity Capital Bank, which together are referred to herein as the “Banks”, to securitization master trusts, which are themselves consolidated VIEs, and therefore these loans are restricted for securitization investors. All new originations of credit card and other loans are determined to be held for investment at origination because the Company has the intent and ability to hold them for the foreseeable future. In determining what constitutes the foreseeable future, the Company considers the average life and homogenous nature of its credit card and other loans. In assessing whether its credit card and other loans continue to be held for investment, the Company also considers capital levels and scheduled maturities of funding instruments used. The assertion regarding the intent and ability to hold credit card and other loans for the foreseeable future can be made with a high degree of certainty given the maturity distribution of the Company’s direct-to-consumer deposits and other funding instruments; the demonstrated ability to replace maturing time-based deposits and other borrowings with new deposits or borrowings; and historic payment activity on its credit card and other loans. Due to the homogenous nature of the Company’s credit card loans, amounts are classified as held for investment on a brand partner portfolio basis. From time to time certain credit card loans are classified as held for sale, as determined on a brand partner basis. The Company carries these assets at the lower of aggregate cost or fair value, and continues to recognize finance charges on an accrual basis. Cash flows associated with credit card and other loans originated or purchased for investment are classified as Cash flows from investing activities, regardless of any subsequent change in intent and ability.
Allowance for Credit Losses	The allowance for credit losses is an estimate of expected credit losses, measured over the estimated life of its credit card and other loans that considers forecasts of future economic conditions in addition to information about past events and current conditions. The estimate under the credit reserving methodology referred to as the Current Expected Credit Loss (CECL) model is significantly influenced by the composition, characteristics and quality of the Company’s portfolio of credit card and other loans, as well as the prevailing economic conditions and forecasts utilized. The estimate of the allowance for credit losses includes an estimate for uncollectible principal as well as unpaid interest and fees. Principal losses, net of recoveries are deducted from the allowance. Principal losses for unpaid interest and fees as well as any adjustments to the allowance associated with unpaid interest and fees are recorded as a reduction to Interest and fees on loans. The allowance is maintained through an adjustment to the Provision for credit losses and is evaluated for appropriateness. ​ In estimating its allowance for credit losses, for each identified group, management utilizes various models and estimation techniques based on historical loss experience, current conditions, reasonable and supportable forecasts and other relevant factors. These models utilize historical data and applicable macroeconomic variables with statistical analysis and behavioral relationships with credit performance. The Company’s quantitative estimate of expected credit losses under CECL is impacted by certain forecasted economic factors. The Company considers the forecast used to be reasonable and supportable over the estimated life of the credit card and other loans, with no reversion period. In addition to the quantitative estimate of expected credit losses, the Company also incorporates qualitative adjustments for certain factors such as Company-specific risks, changes in current economic conditions that may not be captured in the quantitatively derived results, or other relevant factors to ensure the Allowance for credit losses reflects the Company’s best estimate of current expected credit losses. ​ Credit Card Loans ​ The Company uses a “pooled” approach to estimate expected credit losses for financial assets with similar risk characteristics. The Company has evaluated multiple risk characteristics across its credit card loans portfolio, and determined delinquency status and credit quality to be the most significant characteristics for estimating expected credit losses. To estimate its Allowance for credit losses, the Company segments its credit card loans on the basis of delinquency status, credit quality risk score and product. These risk characteristics are evaluated on at least an annual basis, or more frequently as facts and circumstances warrant. In determining the estimated life of the Company’s credit card loans, payments were applied to the measurement date balance with no payments allocated to future purchase activity. The Company uses a combination of First In First Out (FIFO) and the Credit Card Accountability, Responsibility, and Disclosure Act of 2009 (CARD Act) methodology to model balance paydown.
Transfers of Financial Assets	The Company accounts for transfers of financial assets as either sales or financings. Transfers of financial assets that are accounted for as sales are removed from the Consolidated Balance Sheets with any realized gain or loss reflected in the Consolidated Statements of Income during the period in which the sale occurs. Transfers of financial assets that are not accounted for as a sale are treated as a financing. ​ The Company regularly securitizes the majority of its credit card loans through the transfer of those loans to one of its master trusts (the Trusts). The Company performs the decision making for the Trusts, as well as servicing the cardholder accounts that generate the credit card loans held by the Trusts. In its capacity as a servicer, the Company administers the loans, collects payments and charges-off uncollectible balances. Servicing fees are earned by a subsidiary of the Company, which are eliminated in consolidation. ​ The Trusts are consolidated VIEs because they have insufficient equity at risk to finance their activities – being the issuance of debt securities and notes, collateralized by the underlying credit card loans. Because the Company performs the decision making and servicing for the Trusts, it has the power to direct the activities that most significantly impact the Trusts’ economic performance (the collection of the underlying credit card loans). In addition, the Company holds all of the variable interests in the Trusts, with the exception of the liabilities held by third-parties. These variable interests provide the Company with the right to receive benefits and the obligation to absorb losses, which could be significant to the Trusts. As a result of these considerations, the Company is deemed to be the primary beneficiary of the Trusts and therefore consolidates the Trusts. ​ The Trusts issue debt securities and notes, which are non-recourse to the Company. The collections on the securitized credit card loans held by the Trusts are available only for payment of those debt securities and notes, or other obligations arising in the securitization transactions. For its securitized credit card loans, during the initial phase of a securitization reinvestment period, the Company generally retains principal collections in exchange for the transfer of additional credit card loans into the securitized pool of assets. During the amortization or accumulation period of a securitization, the investors’ share of principal collections (in certain cases, up to a maximum specified amount each month) is either distributed to the investors or held in an account until it accumulates to the total amount due, at which time it is paid to the investors in a lump sum. ​
Available-for-Sale Securities	The Company’s investment securities consist of available-for-sale (AFS) securities, which are debt securities, U.S. Treasury bonds and mutual funds. The Company also holds equity securities within its investment securities portfolio. Collectively, these investments are carried at fair value on the Consolidated Balance Sheets within Investment securities. ​ For any AFS debt securities in an unrealized loss position, the CECL methodology requires estimation of the lifetime expected credit losses which then would be recognized in the Consolidated Statements of Income by establishing, or adjusting an existing allowance for those credit losses. The Company did not have any such credit losses for the periods presented. Any unrealized gains, or any portion of a security’s non-credit-related unrealized losses are recorded in the Consolidated Statements of Comprehensive Income, net of tax. The Company typically invests in highly-rated securities with low probabilities of default. ​ Gains and losses on investments in equity securities are recorded in Other non-interest expenses in the Consolidated Statements of Income. ​ Realized gains and losses are recognized upon disposition of the investment securities, using the specific identification method. The table below reflects unrealized gains and losses as of September 30, 2022 and December 31, 2021, respectively:

CREDIT CARD AND OTHER LOANS (Ta

CREDIT CARD AND OTHER LOANS (Tables)	9 Months Ended
	Sep. 30, 2022
CREDIT CARD AND OTHER LOANS
Schedule of components of credit card and other loans	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ Credit card loans ​ $ 17,863 ​ $ 17,217 Installment (other) loans ​ ​ 263 ​ ​ 182 Total credit card and other loans (1)(2) ​ ​ 18,126 ​ ​ 17,399 Less: Allowance for credit losses ​ ​ (2,073) ​ ​ (1,832) Credit card and other loans, net ​ $ 16,053 ​ $ 15,567 (1) Includes $12.6 billion and $11.2 billion of credit card and other loans available to settle obligations of consolidated VIEs as of September 30, 2022 and December 31, 2021, respectively. (2) Includes $268 million and $224 million, of accrued interest and fees that have not yet been billed to cardholders as of September 30, 2022 and December 31, 2021, respectively. ​
Schedule of aging analysis of total credit card and other loans portfolio at amortized cost	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Aging Analysis of Delinquent Amortized Cost Credit Card and Other Loans (1) ​ ​ ​ ​ ​ ​ ​ 31 to 60 days delinquent 61 to 90 days delinquent 91 or more days delinquent Total delinquent Current Total (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of September 30, 2022 $ 411 ​ $ 272 ​ $ 609 ​ $ 1,292 ​ $ 16,537 ​ $ 17,829 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ As of December 31, 2021 $ 262 ​ $ 186 ​ $ 401 ​ $ 849 ​ $ 16,284 ​ $ 17,133 (1) Installment loan delinquencies have been included with credit card loan delinquencies in the table above, as amounts were insignificant as of each period presented. As permitted by GAAP, the Company excludes unbilled finance charges from its amortized cost basis of credit card and other loans. As of September 30, 2022 and December 31, 2021, accrued interest and fees that have not yet been billed to cardholders were $268 million and $224 million, respectively, included in Credit card and other loans on the Consolidated Balance Sheets.
Schedule of information on credit card loans that are considered troubled debt restructurings	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2022 ​ Nine Months Ended September 30, 2022 ​ ​ ​ ​ Pre-modification ​ Post-modification ​ ​ ​ Pre-modification ​ Post-modification ​ ​ Number of ​ Outstanding ​ Outstanding ​ Number of ​ Outstanding ​ Outstanding ​ Restructurings Balance Balance Restructurings Balance Balance (Millions, except for Number of restructurings) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Troubled debt restructurings – credit card loans ​ 37,363 $ 52 $ 52 ​ 107,577 $ 154 $ 154 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021 ​ ​ ​ ​ Pre-modification ​ Post-modification ​ ​ Pre-modification ​ Post-modification ​ ​ Number of ​ Outstanding ​ Outstanding ​ Number of ​ Outstanding ​ Outstanding ​ Restructurings Balance Balance Restructurings Balance Balance (Millions, except for Number of restructurings) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Troubled debt restructurings – credit card loans ​ 37,379 $ 55 $ 55 ​ 134,068 $ 200 $ 200 ​ The following table provides additional information regarding credit card loans modified as TDRs that have subsequently defaulted within 12 months of their modification dates during the specified periods; the probability of default is factored into the allowance for credit losses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, 2022 ​ September 30, 2022 ​ ​ Number of ​ Outstanding Number of ​ Outstanding ​ Restructurings Balance Restructurings Balance (Millions, except for Number of restructurings) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Troubled debt restructurings that subsequently defaulted 11,511 ​ $ 16 ​ 51,201 ​ $ 70 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended Nine Months Ended ​ ​ September 30, 2021 ​ September 30, 2021 ​ ​ Number of ​ Outstanding Number of ​ Outstanding ​ Restructurings Balance Restructurings Balance (Millions, except for Number of restructurings) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Troubled debt restructurings that subsequently defaulted 19,888 ​ $ 27 ​ 102,624 ​ $ 136
Schedule of composition of obligor credit quality	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ ​ December 31, ​ ​ ​ 2022 ​ ​ 2021 ​ ​ 661 or 601 to 600 or 661 or 601 to 600 or ​ ​ Higher ​ ​ 660 ​ ​ Less ​ ​ Higher ​ ​ 660 ​ ​ Less ​ Credit card loans ​ 60 % 27 % 13 % 62 % 26 % 12 %

ALLOWANCE FOR CREDIT LOSSES (Ta

ALLOWANCE FOR CREDIT LOSSES (Tables)	9 Months Ended
	Sep. 30, 2022
ALLOWANCE FOR CREDIT LOSSES
Schedule of Company's Allowance for loan loss	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ ​ September 30, ​ September 30, ​ ​ 2022 2021 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Beginning balance ​ $ 1,992 ​ $ 1,635 ​ $ 1,832 ​ $ 2,008 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Provision for credit losses (1) ​ 304 ​ 161 ​ 902 ​ 180 ​ Net principal losses (2) ​ (223) ​ (151) ​ (661) ​ (543) ​ Ending balance ​ $ 2,073 ​ $ 1,645 ​ $ 2,073 ​ $ 1,645 ​ (1) Provision for credit losses includes a build/release for the allowance, as well as replenishment of Net principal losses. (2) Net principal losses are presented net of recoveries of $47 million and $36 million for the three months ended September 30, 2022 and 2021, respectively, and $126 million and $128 million for the nine months ended September 30, 2022 and 2021, respectively. Net principal losses for both the three and nine months ended September 30, 2022 include a $5 million adjustment related to the effects of the purchase of previously written-off accounts that were sold to a third-party debt collection agency; no such adjustment was made in the comparative periods.

SECURITIZATIONS (Tables)

SECURITIZATIONS (Tables)	9 Months Ended
	Sep. 30, 2022
SECURITIZATIONS
Schedule of securitized credit card loans and related delinquencies, and net principal losses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, ​ December 31, ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ Total credit card loans – available to settle obligations of consolidated VIEs ​ $ 12,570 ​ $ 11,215 Of which: principal amount of credit card loans 91 days or more past due ​ $ 239 ​ $ 159 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2022 2021 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net principal losses of securitized credit card loans ​ $ 123 ​ $ 91 ​ $ 363 ​ $ 347

INVESTMENT SECURITIES (Tables)

INVESTMENT SECURITIES (Tables)	9 Months Ended
	Sep. 30, 2022
INVESTMENT SECURITIES
Schedule of principal components of other investments, which are carried at fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ December 31, 2021 ​ Amortized Unrealized Unrealized ​ ​ Amortized Unrealized Unrealized ​ ​ ​ Cost Gains Losses Fair Value Cost Gains Losses Fair Value (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale securities ​ $ 175 ​ $ — ​ $ (24) ​ $ 151 ​ $ 173 ​ $ 4 ​ $ (2) ​ $ 175 Equity securities ​ ​ 67 ​ ​ — ​ ​ — ​ ​ 67 ​ ​ 64 ​ ​ — ​ ​ — ​ ​ 64 Total ​ $ 242 ​ $ — ​ $ (24) ​ $ 218 ​ $ 237 ​ $ 4 ​ $ (2) ​ $ 239
Schedule of unrealized losses and fair value for investments that were in an unrealized loss position, aggregated by investment category and the length of time that individual securities have been in a continuous loss position	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ ​ Less than 12 months ​ 12 Months or Greater ​ Total ​ ​ ​ Unrealized ​ ​ Unrealized ​ ​ Unrealized ​ Fair Value Losses Fair Value Losses Fair Value Losses (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale securities ​ $ 105 ​ $ (13) ​ $ 46 ​ $ (11) ​ $ 151 ​ $ (24) Total ​ $ 105 ​ $ (13) ​ $ 46 ​ $ (11) ​ $ 151 ​ $ (24) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ ​ Less than 12 months ​ 12 Months or Greater ​ Total ​ ​ ​ Unrealized ​ ​ Unrealized ​ ​ Unrealized ​ Fair Value Losses Fair Value Losses Fair Value Losses (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Available-for-sale securities ​ $ 57 ​ $ (1) ​ $ 15 ​ $ (1) ​ $ 72 ​ $ (2) Total ​ $ 57 ​ $ (1) ​ $ 15 ​ $ (1) ​ $ 72 ​ $ (2)

DEPOSITS (Tables)

DEPOSITS (Tables)	9 Months Ended
	Sep. 30, 2022
DEPOSITS.
Schedule of Customer Deposits Based on Interest	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ Interest-bearing ​ $ 12,407 ​ $ 11,027 Non-interest-bearing (including cardholder credit balances) ​ ​ 37 ​ ​ — Total deposits ​ $ 12,444 ​ $ 11,027
Schedule of Customer Deposits by Deposit Type	​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, December 31, ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ Savings accounts ​ ​ ​ ​ ​ ​ Direct-to-consumer (retail) ​ $ 2,901 ​ $ 1,713 Wholesale ​ ​ 3,809 ​ ​ 3,873 Certificates of deposit ​ ​ ​ ​ ​ ​ Direct-to-consumer (retail) ​ ​ 2,275 ​ ​ 1,467 Wholesale ​ ​ 3,422 ​ ​ 3,974 Cardholder credit balances ​ ​ 37 ​ ​ — Total deposits ​ $ 12,444 ​ $ 11,027
Schedule of Maturities of Certificates of Deposit	​ The scheduled maturities of certificates of deposit as of September 30, 2022 were as follows: ​ ​ ​ ​ ​ ​ ​ ​ (Millions) ​ ​ ​ 2022 (1) ​ $ 255 2023 ​ 3,270 2024 ​ 1,268 2025 ​ 412 2026 ​ 196 Thereafter ​ 296 Total certificates of deposit ​ ​ 5,697 (1) The 2022 balance includes $8 million in unamortized debt issuance costs, which are associated with the entire portfolio of certificates of deposit. ​

OTHER NON-INTEREST INCOME AND_2

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES (Tables)	9 Months Ended
	Sep. 30, 2022
OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES
Components of Other non-interest income	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Payment protection products ​ $ 39 ​ $ 35 ​ $ 116 ​ $ 103 Loss from equity method investment ​ ​ (11) ​ ​ — ​ ​ (44) ​ ​ — Other ​ 2 ​ 10 ​ 3 ​ 11 Total other non-interest income ​ $ 30 ​ $ 45 ​ $ 75 ​ $ 114
Components of Other non-interest expenses	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ Nine Months Ended ​ ​ September 30, ​ September 30, ​ 2022 2021 ​ 2022 2021 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Professional services and regulatory fees ​ $ 33 ​ $ 40 ​ $ 102 ​ $ 105 Occupancy expense ​ ​ 5 ​ ​ 6 ​ ​ 17 ​ ​ 21 Other (1) ​ ​ 16 ​ ​ 24 ​ ​ 48 ​ ​ 55 Total other non-interest expenses ​ $ 54 ​ $ 70 ​ $ 167 ​ $ 181 ​ (1) Primarily related to costs associated with various other individually insignificant operating activities.

FAIR VALUES OF FINANCIAL INST_2

FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Sep. 30, 2022
FAIR VALUES OF FINANCIAL INSTRUMENTS
Schedule of estimated fair value of Company's financial instruments	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ December 31, 2021 ​ ​ Carrying ​ Fair ​ Carrying ​ Fair ​ Amount Value Amount Value (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit card and other loans, net ​ $ 16,053 ​ $ 18,279 ​ $ 15,567 ​ $ 17,989 Investment securities ​ 218 ​ 218 ​ 239 ​ 239 Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ 12,444 ​ 12,351 ​ 11,027 ​ 11,135 Debt issued by consolidated VIEs ​ 4,015 ​ 4,015 ​ 5,453 ​ 5,467 Long-term and other debt ​ 1,916 ​ 1,770 ​ 1,986 ​ 2,053
Schedule of assets and liabilities carried at fair value measured on recurring basis	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ Total Level 1 Level 2 Level 3 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment securities ​ $ 218 ​ $ 43 ​ $ 175 ​ $ — Total assets measured at fair value ​ $ 218 ​ $ 43 ​ $ 175 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Total Level 1 Level 2 Level 3 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Investment securities ​ $ 239 ​ $ 48 ​ $ 191 ​ $ — Total assets measured at fair value ​ $ 239 ​ $ 48 ​ $ 191 ​ $ —
Schedule of assets and liabilities disclosed but not carried at fair value	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ September 30, 2022 ​ Fair Value Level 1 Level 2 Level 3 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit card and other loans, net ​ $ 18,279 ​ $ — ​ $ — ​ $ 18,279 Total ​ $ 18,279 ​ $ — ​ $ — ​ $ 18,279 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ $ 12,351 ​ $ — ​ $ 12,351 ​ $ — Debt issued by consolidated VIEs ​ 4,015 ​ — ​ 4,015 ​ — Long-term and other debt ​ 1,770 ​ — ​ 1,770 ​ — Total ​ $ 18,136 ​ $ — ​ $ 18,136 ​ $ — ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2021 ​ Fair Value Level 1 Level 2 Level 3 (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial assets ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Credit card and other loans, net ​ $ 17,989 ​ $ — ​ $ — ​ $ 17,989 Total ​ $ 17,989 ​ $ — ​ $ — ​ $ 17,989 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Financial liabilities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Deposits ​ $ 11,135 ​ $ — ​ $ 11,135 ​ $ — Debt issued by consolidated VIEs ​ 5,467 ​ — ​ 5,467 ​ — Long-term and other debt ​ 2,053 ​ — ​ 2,053 ​ — Total ​ $ 18,655 ​ $ — ​ $ 18,655 ​ $ —

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2022
COMMITMENTS AND CONTINGENCIES.
Schedule of actual capital ratios and minimum ratios	​ The actual capital ratios and minimum ratios for each Bank, as well as the Combined Banks, as of September 30, 2022, are as follows: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Minimum Ratio to be ​ ​ ​ Minimum Ratio for ​ Well Capitalized under ​ Actual ​ Capital Adequacy ​ Prompt Corrective ​ Ratio ​ Purposes ​ Action Provisions Comenity Bank ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Equity Tier 1 capital ratio (1) ​ 25.6 % ​ 4.5 % ​ 6.5 % Tier 1 capital ratio (2) ​ 25.6 ​ ​ 6.0 ​ ​ 8.0 ​ Total Risk-based capital ratio (3) ​ 26.9 ​ ​ 8.0 ​ ​ 10.0 ​ Tier 1 Leverage capital ratio (4) ​ 20.4 ​ ​ 4.0 ​ ​ 5.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Comenity Capital Bank ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Equity Tier 1 capital ratio (1) ​ 18.4 % ​ 4.5 % ​ 6.5 % Tier 1 capital ratio (2) ​ 18.4 ​ ​ 6.0 ​ ​ 8.0 ​ Total Risk-based capital ratio (3) ​ 19.7 ​ ​ 8.0 ​ ​ 10.0 ​ Tier 1 Leverage capital ratio (4) ​ 16.1 ​ ​ 4.0 ​ ​ 5.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Combined Banks ​ ​ ​ ​ ​ ​ ​ ​ ​ Common Equity Tier 1 capital ratio (1) ​ 21.4 % ​ 4.5 % ​ 6.5 % Tier 1 capital ratio (2) ​ 21.4 ​ ​ 6.0 ​ ​ 8.0 ​ Total Risk-based capital ratio (3) ​ 22.8 ​ ​ 8.0 ​ ​ 10.0 ​ Tier 1 Leverage capital ratio (4) ​ 18.0 ​ ​ 4.0 ​ ​ 5.0 ​ (1) The Common Equity Tier 1 capital ratio represents common equity tier 1 capital divided by total risk-weighted assets. (2) The Tier 1 capital ratio represents tier 1 capital divided by total risk-weighted assets. (3) The Total Risk-based capital ratio represents total capital divided by total risk-weighted assets. (4) The Tier 1 Leverage capital ratio represents tier 1 capital divided by total average assets, after certain adjustments. ​

CHANGES IN ACCUMULATED OTHER _2

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	9 Months Ended
	Sep. 30, 2022
CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS
Schedule of changes in each component of accumulated comprehensive income (loss), net of tax effects	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Unrealized ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Net Unrealized ​ Gains (Losses) ​ Gains (Losses) ​ Currency ​ Other ​ Losses on on Cash on Net Translation Comprehensive Three Months Ended September 30, 2022 AFS Securities Flow Hedges Investment Hedge Adjustments Loss (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of June 30, 2022 $ (11) $ — $ — $ (3) $ (14) Changes in other comprehensive loss ​ ​ (7) ​ ​ — ​ ​ — ​ ​ — ​ ​ (7) Balance as of September 30, 2022 $ (18) $ — $ — $ (3) $ (21) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Foreign ​ Accumulated ​ ​ Net Unrealized ​ Net Unrealized ​ Net Unrealized ​ Currency ​ Other ​ Gains (Losses) Gains on Cash Losses on Net Translation Comprehensive Three Months Ended September 30, 2021 on AFS Securities Flow Hedges Investment Hedge Adjustments (1) Loss (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of June 30, 2021 $ 14 $ — $ (7) $ (40) $ (33) Changes in other comprehensive (loss) income ​ ​ (4) ​ ​ 1 ​ ​ — ​ ​ (20) ​ ​ (23) Balance as of September 30, 2021 $ 10 $ 1 $ (7) $ (60) $ (56) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Unrealized ​ Net Unrealized ​ Foreign ​ Accumulated ​ ​ Net Unrealized ​ Gains (Losses) ​ Gains (Losses) ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ on Net ​ Translation ​ Comprehensive Nine Months Ended September 30, 2022 on AFS Securities Flow Hedges Investment Hedge Adjustments Loss (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2021 $ 1 $ — $ — $ (3) $ (2) Changes in other comprehensive loss ​ ​ (19) ​ ​ — ​ ​ — ​ ​ — ​ ​ (19) Balance as of September 30, 2022 $ (18) $ — $ — $ (3) $ (21) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Net Unrealized ​ ​ ​ Foreign ​ Accumulated ​ ​ Net Unrealized ​ (Losses) Gains ​ Net Unrealized ​ Currency ​ Other ​ ​ Gains (Losses) ​ on Cash ​ Losses on Net ​ Translation ​ Comprehensive Nine Months Ended September 30, 2021 on AFS Securities Flow Hedges Investment Hedge Adjustments (1) Loss (Millions) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Balance as of December 31, 2020 $ 23 $ (1) $ (7) $ (20) $ (5) Changes in other comprehensive (loss) income ​ ​ (13) ​ ​ 2 ​ ​ — ​ ​ (40) ​ ​ (51) Balance as of September 30, 2021 $ 10 $ 1 $ (7) $ (60) $ (56) (1) Primarily related to the impact of changes in the Canadian dollar and Euro foreign currency exchange rates from the Company’s LoyaltyOne segment, which was spun off in November 2021.

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2022
EARNINGS PER SHARE
Schedule of computation of basic and diluted net income per share	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, ​ Nine Months Ended September 30, ​ 2022 2021 2022 2021 (Millions, except per share amounts) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Numerator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 134 ​ $ 206 ​ $ 358 ​ $ 737 Income (loss) from discontinued operations, net of income taxes ​ ​ — ​ ​ 18 ​ ​ (1) ​ ​ 46 Net income ​ $ 134 ​ $ 224 ​ $ 357 ​ $ 783 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Denominator ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic: Weighted average common stock ​ 49.8 ​ 49.8 ​ 49.9 ​ 49.7 Weighted average effect of dilutive securities ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Add: net effect of dilutive unvested restricted stock awards (1) ​ 0.1 ​ 0.2 ​ 0.1 ​ 0.3 Diluted ​ 49.9 ​ 50.0 ​ 50.0 ​ 50.0 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Basic EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2.69 ​ $ 4.14 ​ $ 7.17 ​ $ 14.81 Income (loss) from discontinued operations ​ $ — ​ $ 0.36 ​ $ (0.01) ​ $ 0.94 Net income per share ​ $ 2.69 ​ $ 4.50 ​ $ 7.16 ​ $ 15.75 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Diluted EPS ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Income from continuing operations ​ $ 2.69 ​ $ 4.11 ​ $ 7.16 ​ $ 14.74 Income (loss) from discontinued operations ​ $ — ​ $ 0.36 ​ $ (0.01) ​ $ 0.94 Net income per share ​ $ 2.69 ​ $ 4.47 ​ $ 7.15 ​ $ 15.68 (1) For the three and nine months ended September 30, 2022 and 2021, an insignificant amount of restricted stock awards were excluded from each calculation of weighted average dilutive common shares as the effect would have been anti-dilutive.

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	9 Months Ended
	Sep. 30, 2022
LoyaltyOne
Schedule of financial statement information for discontinued operations	​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended September 30, 2021 ​ Nine Months Ended September 30, 2021 ​ (Millions) ​ ​ ​ ​ ​ ​ ​ Total interest income ​ $ — ​ $ — ​ Total interest expense (1) ​ ​ 3 ​ ​ 10 ​ Net interest income ​ ​ (3) ​ ​ (10) ​ Total non-interest income ​ ​ 169 ​ ​ 497 ​ Total non-interest expenses ​ ​ 134 ​ ​ 410 ​ Income before provision from income taxes ​ ​ 32 ​ ​ 77 ​ Provision for income taxes ​ ​ 14 ​ ​ 30 ​ Income from discontinued operations, net of income taxes ​ $ 18 ​ $ 47 ​ (1) The Company’s Credit Agreement, as amended, required a $725 million prepayment of term loans in conjunction with the LoyaltyOne spinoff. As a result, the interest expense reflected above is the allocation to discontinued operations of interest on the basis of this $725 million mandatory prepayment. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (Millions) ​ Three Months Ended September 30, 2021 ​ Nine Months Ended September 30, 2021 ​ Depreciation and amortization ​ $ 9 ​ $ 28 ​ Capital expenditures ​ $ 4 ​ $ 13 ​

CREDIT CARD AND OTHER LOANS - A

CREDIT CARD AND OTHER LOANS - Allowance for Loan Loss and Delinquencies (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Jun. 30, 2022	Dec. 31, 2021	Jun. 30, 2021	Dec. 31, 2020
Receivables	$ 16,537		$ 16,537			$ 16,284
Total credit card and other loans	18,126		18,126			17,399
Total credit card loans - available to settle obligations of consolidated VIEs	12,570		12,570			11,215
Unbilled finance charges	268		268			224
Allowance for credit losses	(2,073)	$ (1,645)	(2,073)	$ (1,645)	$ (1,992)	(1,832)	$ (1,635)	$ (2,008)
Credit card and loan receivables, net	$ 16,053		$ 16,053			15,567
Period an account becomes past due before a proprietary collection scoring algorithm automatically scores the risk of an account becoming further delinquent			30 days
Principal receivables balances contractually delinquent:
Re-aged accounts as percentage of total credit card and loan receivables	1.40%	1.40%	1.50%	1.90%
Modified Credit Card Receivables
Impaired credit card and loan receivables	$ 248		$ 248			281
Allowance for loan loss on impaired credit card receivables	$ 62		$ 62			$ 81
Maximum percentage of credit card receivables to total portfolio	2%		2%			2%
Average recorded investment in impaired credit card receivables	$ 248	$ 339	$ 259	$ 412
Interest income on modified credit card receivables	4	5	$ 11	21
Number of days a loan is contractually past due before resulting in charge-off			180 days
Number of days after notification of creditor's bankruptcy or death when an account is charged-off			60 days
Actual charge-offs for unpaid interest and fees	145	$ 91	$ 429	$ 335
Consolidated Variable Interest Entities
Total credit card loans - available to settle obligations of consolidated VIEs	12,570		12,570			$ 11,215
Credit card loans
Receivables	17,863		$ 17,863			17,217
Modified Credit Card Receivables
Maximum period of time temporary programs' concessions remain in place			12 months
Credit card loans | Maximum
Modified Credit Card Receivables
Number of days after notification of creditor's bankruptcy or death when an account is charged-off			180 days
Installment (other) loans
Receivables	263		$ 263			182
Allowance for credit losses	$ (19)		$ (19)			$ (14)
Period for which interest and fee income accrue until balance, interest and other fees are paid or charged off on installment loan receivables			120 days
Installment (other) loans | Maximum
Period for which interest and fee income accrue until balance, interest and other fees are paid or charged off on installment loan receivables			120 days

CREDIT CARD AND OTHER LOANS -_2

CREDIT CARD AND OTHER LOANS - Amortized Cost Basis Credit Card and Loan Receivables (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Receivables	$ 16,537	$ 16,284
Total	17,829	17,133
31 to 60 days delinquent
Financing Receivable, Past Due [Line Items]
Receivables	411	262
61 to 90 days delinquent
Financing Receivable, Past Due [Line Items]
Receivables	272	186
91 or more days delinquent
Financing Receivable, Past Due [Line Items]
Receivables	609	401
Total delinquent
Financing Receivable, Past Due [Line Items]
Receivables	$ 1,292	$ 849

CREDIT CARD AND OTHER LOANS - T

CREDIT CARD AND OTHER LOANS - Troubled Debt Restructurings (Details) - Consumer Portfolio	3 Months Ended		9 Months Ended
	Sep. 30, 2022 USD ($) item	Sep. 30, 2021 USD ($) item	Sep. 30, 2022 USD ($) item	Sep. 30, 2021 USD ($) item
Troubled debt restructurings - credit card loans
Modifications related to troubled debt restructurings within credit card and loan receivables
Number of Restructurings | item	37,363	37,379	107,577	134,068
Pre-modification Outstanding Balance	$ 52,000,000	$ 55,000,000	$ 154,000,000	$ 200,000,000
Post-modification Outstanding Balance	$ 52,000,000	$ 55,000,000	$ 154,000,000	$ 200,000,000
Troubled debt restructurings that subsequently defaulted
Modifications related to troubled debt restructurings within credit card and loan receivables
Number of Restructurings	11,511	19,888	51,201	102,624
Post-modification Outstanding Balance	$ 16,000,000	$ 27,000,000	$ 70,000,000	$ 136,000,000

CREDIT CARD AND OTHER LOANS - C

CREDIT CARD AND OTHER LOANS - Credit Quality on Amortized Cost Basis (Details) - USD ($) $ in Billions	Sep. 30, 2022	Dec. 31, 2021
Credit Quality
Customer accounts as a percentage of total credit card loans balance for which a Vantage credit score is not available	0.30%	0.10%
Unused credit card lines available to cardholders	$ 114.2	$ 112.1
Installment (other) loans | FICO Score, From 660 and Above
Credit Quality
Percentage of total amortized cost basis of revolving loan receivables outstanding	86	84
Installment (other) loans | FICO Score Below 660
Credit Quality
Percentage of total amortized cost basis of revolving loan receivables outstanding	14	16
Credit Card Receivable | No Score | Credit Score, from 661 or Higher
Credit Quality
Percentage of amortized cost basis of credit card receivables outstanding	60%	62%
Credit Card Receivable | No Score | Credit Score, From 601 to 660
Credit Quality
Percentage of amortized cost basis of credit card receivables outstanding	27%	26%
Credit Card Receivable | No Score | Credit Score, From 600 or Less
Credit Quality
Percentage of amortized cost basis of credit card receivables outstanding	13%	12%

CREDIT CARD AND OTHER LOANS - S

CREDIT CARD AND OTHER LOANS - Securitized Credit Card Receivables (Details) $ in Millions	1 Months Ended			9 Months Ended
	Oct. 31, 2022 USD ($)	Apr. 30, 2022 USD ($)	Aug. 31, 2021 USD ($)	Sep. 30, 2022 USD ($) item	Sep. 30, 2021 USD ($)	Dec. 31, 2021 item
Portfolio Held For Sale
Number of credit card portfolios held for sale | item				0		0
Number of credit card portfolios sold | item				0
Proceeds from sale of credit card loan portfolio			$ 512		$ 512
Gain (loss) on sales of credit card portfolio			$ 10
Portfolio Acquisitions
Purchase price of credit card portfolio		$ 249		$ 249	$ 99
Subsequent event
Portfolio Acquisitions
Purchase price of credit card portfolio	$ 1,600

ALLOWANCE FOR CREDIT LOSSES (De

ALLOWANCE FOR CREDIT LOSSES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Allowance for Loan Loss
Payments allocated to future purchase activity	$ 0		$ 0
Balance at beginning of period	1,992	$ 1,635	1,832	$ 2,008
Provision for credit losses	304	161	902	180
Net principal losses	(223)	(151)	(661)	(543)
Balance at end of period	2,073	1,645	2,073	1,645
Recoveries	47	36	126	128
Adjustment related to the effects of the purchase of previously written-off accounts that were sold to a third-party debt collection agency	5	$ 0	5	$ 0
Installment (other) loans
Allowance for Loan Loss
Balance at beginning of period			14
Balance at end of period	$ 19		$ 19

SECURITIZATIONS (Details)

SECURITIZATIONS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Total credit card loans - available to settle obligations of consolidated VIEs	$ 12,570		$ 12,570		$ 11,215
Of which: principal amount of credit card loans 91 days or more past due	239		239		$ 159
Net principal losses of securitized credit card loans	$ 123	$ 91	$ 363	$ 347
Minimum
Minimum interests requirement (as a percent)			4%
Maximum
Minimum interests requirement (as a percent)			10%

INVESTMENT SECURITIES (Details)

INVESTMENT SECURITIES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Marketable Securities, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Available-for-sale securities, Amortized Cost	$ 175		$ 175		$ 173
Available-for-sale securities, Unrealized Gains					4
Available-for-sale securities, Unrealized Losses	(24)		(24)		(2)
Available-for-sale securities, Fair Value	151		151		175
Equity securities, Amortized Cost	67		67		64
Equity securities, Fair Value	67		67		64
Amortized Cost, Total	242		242		237
Fair Value, Total	218		218		239
Fair Value
Less than 12 months	105		105		57
12 Months or Greater	46		46		15
Total	151		151		72
Unrealized Losses
Less than 12 months	(13)		(13)		(1)
12 Months or Greater	(11)		(11)		(1)
Total	(24)		(24)		(2)
Debt Securities, Available-for-Sale, Fair Value to Amortized Cost, after Allowance for Credit Loss [Abstract]
Available-for-sale securities, Unrealized Gains					4
Available-for-sale securities, Unrealized Losses	(24)		(24)		(2)
Available-for-sale securities, Fair Value	151		151		$ 175
Estimated Fair Value
Gains or losses from the sale of investment securities	0	$ 0	0	$ 0
Mortgage-backed securities
Amortized Cost
Mortgage-backed securities with no stated maturity	175		175
Estimated Fair Value
Mortgage-backed securities with no stated maturity	$ 151		$ 151

DEPOSITS - Customer Deposits Ba

DEPOSITS - Customer Deposits Based on Interest (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
DEPOSITS.
Interest-bearing	$ 12,407	$ 11,027
Non-interest-bearing (including cardholder credit balances)	37
Total deposits	$ 12,444	$ 11,027

DEPOSITS - Customer Deposits _2

DEPOSITS - Customer Deposits Based on Deposit Type (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Deposit Liability [Line Items]
Certificates of deposit	$ 5,697
Cardholder credit balances	37
Total deposits	12,444	$ 11,027
Direct-to-consumer
Deposit Liability [Line Items]
Savings accounts	2,901	1,713
Certificates of deposit	2,275	1,467
Wholesale
Deposit Liability [Line Items]
Savings accounts	3,809	3,873
Certificates of deposit	3,422	$ 3,974
Cardholder credit balances
Deposit Liability [Line Items]
Cardholder credit balances	$ 37

DEPOSITS - Maturities of Certif

DEPOSITS - Maturities of Certificates of Deposit (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
DEPOSITS.
2022	$ 255
2023	3,270
2024	1,268
2025	412
2026	196
Thereafter	296
Total certificates of deposit	5,697
Unamortized debt issuance costs	8
Certificates of deposit that exceeded applicable FDIC insurance limits which are generally $250,000 or more	$ 711	$ 500

OTHER NON-INTEREST INCOME AND_3

OTHER NON-INTEREST INCOME AND OTHER NON-INTEREST EXPENSES (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Other Noninterest Income [Abstract]
Payment protection products	$ 39	$ 35	$ 116	$ 103
Loss from equity method investment	(11)		(44)
Other	2	10	3	11
Total other non-interest income	30	45	75	114
Other Noninterest Expenses [Abstract]
Professional services and regulatory fees	33	40	102	105
Occupancy expense	5	6	17	21
Other	16	24	48	55
Total other non-interest expenses	$ 54	$ 70	$ 167	$ 181

FAIR VALUES OF FINANCIAL INST_3

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value of Instruments (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Dec. 31, 2021
Fair Value of Financial Instruments
Transfers into or out of Level 3	$ 0	$ 0	$ 0	$ 0
Transfers between Levels 1 and 2	0	$ 0	0	$ 0
Financial assets
Credit card and loan receivables, net	16,053		16,053		$ 15,567
Financial liabilities
Deposits	12,351		12,351		11,135
Debt issued by consolidated variable interest entities	4,015		4,015		5,453
Non-recourse borrowings of consolidated securitization entities	4,015		4,015		5,467
Long-term and other debt	1,770		1,770		2,053
Total liabilities measured at fair value	18,136		18,136		18,655
Carrying Amount
Financial assets
Credit card and loan receivables, net	16,053		16,053		15,567
Investment securities	218		218		239
Financial liabilities
Deposits	12,444		12,444		11,027
Debt issued by consolidated variable interest entities	4,015		4,015		5,453
Long-term and other debt	1,916		1,916		1,986
Fair Value
Financial assets
Credit card and loan receivables, net	18,279		18,279		17,989
Investment securities	218		218		239
Financial liabilities
Deposits	12,351		12,351		11,135
Debt issued by consolidated variable interest entities	4,015		4,015		5,467
Long-term and other debt	$ 1,770		$ 1,770		$ 2,053

FAIR VALUES OF FINANCIAL INST_4

FAIR VALUES OF FINANCIAL INSTRUMENTS - Fair Value Level Disclosure (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Assets disclosed at fair value
Total assets measured at fair value	$ 18,279	$ 17,989
Level 3
Assets disclosed at fair value
Total assets measured at fair value	18,279	17,989
Recurring
Assets disclosed at fair value
Investment securities	218	239
Total assets measured at fair value	218	239
Recurring | Level 1
Assets disclosed at fair value
Investment securities	43	48
Total assets measured at fair value	43	48
Recurring | Level 2
Assets disclosed at fair value
Investment securities	175	191
Total assets measured at fair value	$ 175	$ 191

FAIR VALUES OF FINANCIAL INST_5

FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets and Liabilities Not Carried at Fair Value (Details) - USD ($) $ in Millions	Sep. 30, 2022	Dec. 31, 2021
Financial assets
Credit card and loan receivables, net	$ 18,279	$ 17,989
Total assets measured at fair value	18,279	17,989
Financial liabilities
Deposits	12,351	11,135
Debt issued by consolidated VIEs	4,015	5,467
Long-term and other debt	1,770	2,053
Total liabilities measured at fair value	18,136	18,655
Level 2
Financial liabilities
Deposits	12,351	11,135
Debt issued by consolidated VIEs	4,015	5,467
Long-term and other debt	1,770	2,053
Total liabilities measured at fair value	18,136	18,655
Level 3
Financial assets
Credit card and loan receivables, net	18,279	17,989
Total assets measured at fair value	$ 18,279	$ 17,989

FAIR VALUES OF FINANCIAL INST_6

FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Schedule of Equity Method Investments [Line Items]
Asset Impairment Charges		$ 0		$ 0
LVI
Schedule of Equity Method Investments [Line Items]
Write-down of equity method investment	$ 11		$ 44
Investment carrying amount	6		6
Fair value of investment	$ 6		$ 6

COMMITMENTS AND CONTINGENCIES -

COMMITMENTS AND CONTINGENCIES - Regulatory Matters and Cardholders (Details) $ in Millions		1 Months Ended		12 Months Ended
	Jan. 19, 2021 USD ($) item	Jan. 31, 2022 USD ($)	Jan. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Sep. 30, 2022
Comenity Bank
Common Equity Tier 1 capital to risk-weighted assets
Common Equity Tier 1 capital ratio, Actual Ratio (as a percent)					0.256
Common Equity Tier 1 capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.045%
Common Equity Tier 1 capital ratio, Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions (as a percent)					0.065%
Banking Regulation, Risk-Based Information [Abstract]
Tier 1 capital ratio, Actual Ratio (as a percent)					0.256
Tier 1 capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.060
Tier 1 capital ratio, Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions (as a percent)					0.080
Total Risk-based capital ratio, Actual Ratio (as a percent)					0.269
Total Risk-based capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.080
Total Risk-based capital ratio, Minimum Ratio to be Well Capitalized under prompt Corrective Action Provisions (as a percent)					0.100
Tier 1 capital to average assets
Tier 1 Leverage capital ratio, Actual Ratio (as a percent)					0.204
Tier 1 Leverage capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.040
Tier 1 Leverage capital ratio, Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions (as a percent)					0.050
Comenity Capital Bank
Common Equity Tier 1 capital to risk-weighted assets
Common Equity Tier 1 capital ratio, Actual Ratio (as a percent)					0.184
Common Equity Tier 1 capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.045%
Common Equity Tier 1 capital ratio, Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions (as a percent)					0.065%
Banking Regulation, Risk-Based Information [Abstract]
Tier 1 capital ratio, Actual Ratio (as a percent)					0.184
Tier 1 capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.060
Tier 1 capital ratio, Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions (as a percent)					0.080
Total Risk-based capital ratio, Actual Ratio (as a percent)					0.197
Total Risk-based capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.080
Total Risk-based capital ratio, Minimum Ratio to be Well Capitalized under prompt Corrective Action Provisions (as a percent)					0.100
Tier 1 capital to average assets
Tier 1 Leverage capital ratio, Actual Ratio (as a percent)					0.161
Tier 1 Leverage capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.040
Tier 1 Leverage capital ratio, Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions (as a percent)					0.050
Combined Banks
Common Equity Tier 1 capital to risk-weighted assets
Common Equity Tier 1 capital ratio, Actual Ratio (as a percent)					0.214
Common Equity Tier 1 capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.045%
Common Equity Tier 1 capital ratio, Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions (as a percent)					0.065%
Banking Regulation, Risk-Based Information [Abstract]
Tier 1 capital ratio, Actual Ratio (as a percent)					0.214
Tier 1 capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.060
Tier 1 capital ratio, Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions (as a percent)					0.080
Total Risk-based capital ratio, Actual Ratio (as a percent)					0.228
Total Risk-based capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.080
Total Risk-based capital ratio, Minimum Ratio to be Well Capitalized under prompt Corrective Action Provisions (as a percent)					0.100
Tier 1 capital to average assets
Tier 1 Leverage capital ratio, Actual Ratio (as a percent)					0.180
Tier 1 Leverage capital ratio, Minimum Ratio for Capital Adequacy Purposes (as a percent)					0.040
Tier 1 Leverage capital ratio, Minimum Ratio to be Well Capitalized under Prompt Corrective Action Provisions (as a percent)					0.050
Discontinued Operations, Disposed of by Sale
Contingencies
Loss Contingency, Loss in Period				$ 150
Epsilon | Discontinued Operations, Disposed of by Sale
Contingencies
Loss contingency, total	$ 150
Number of installment payments | item	2
Loss contingency, payment		$ 75	$ 75

CHANGES IN ACCUMULATED OTHER _3

CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Accumulated Other Comprehensive Income
Balance	$ 2,275	$ 2,048	$ 2,086	$ 1,521
Changes in other comprehensive income (loss)	(7)	(23)	(19)	(51)
Balance	2,399	2,246	2,399	2,246
Net Unrealized Gains (Losses) on AFS Securities
Accumulated Other Comprehensive Income
Balance	(11)	14	1	23
Changes in other comprehensive income (loss)	(7)	(4)	(19)	(13)
Balance	(18)	10	(18)	10
Net Unrealized Gains (Losses) on Cash Flow Hedges
Accumulated Other Comprehensive Income
Balance				(1)
Changes in other comprehensive income (loss)		1		2
Balance		1		1
Net Unrealized Gains (Losses) on Net Investment Hedge
Accumulated Other Comprehensive Income
Balance		(7)		(7)
Balance		(7)		(7)
Foreign Currency Translation Adjustment Gains
Accumulated Other Comprehensive Income
Balance	(3)	(40)	(3)	(20)
Changes in other comprehensive income (loss)		(20)		(40)
Balance	(3)	(60)	(3)	(60)
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income
Balance	(14)	(33)	(2)	(5)
Changes in other comprehensive income (loss)	(7)	(23)	(19)	(51)
Balance	$ (21)	$ (56)	$ (21)	$ (56)

STOCKHOLDERS' EQUITY - Stock Re

STOCKHOLDERS' EQUITY - Stock Repurchase Programs (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Feb. 28, 2022
Stock Repurchase Programs
Shares of company's outstanding common stock authorized to be repurchased			200,000
Term of stock repurchase program	1 year
Number of shares repurchased	200,000	0
Total cost of shares repurchased	$ 12

STOCKHOLDERS' EQUITY - Restrict

STOCKHOLDERS' EQUITY - Restricted Stock Unit Awards and Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021	Oct. 27, 2022
Dividends
Dividends paid	$ 10		$ 32	$ 31
Cash dividend, per share					$ 0.21
Stock-based compensation expense	$ 8	$ 7	$ 24	$ 20
Performance-based restricted stock unit awards
Number of Shares
Shares granted (in shares)			82,513
Weighted Average Fair Value
Weighted average grant-date fair value (in dollars per share)	$ 72.42		$ 72.42
Dividends
Percentage of stock units on which restrictions will lapse in February 2025			100%
Service-based restricted stock unit awards
Number of Shares
Shares granted (in shares)			664,655
Weighted Average Fair Value
Weighted average grant-date fair value (in dollars per share)	$ 66.76		$ 66.76
Stock Compensation Plans, Additional Disclosures
Award vesting period			3 years
Minimum | Performance-based restricted stock unit awards
Dividends
Percentage of stock units to vest			0%
Maximum | Performance-based restricted stock unit awards
Dividends
Percentage of stock units to vest			150%

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
INCOME TAXES
Effective tax rate utilized (as a percent)	28.90%	20.70%	29.50%	24.80%

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2022	Sep. 30, 2021
Numerator:
Income from continuing operations	$ 134	$ 206	$ 358	$ 737
Income (loss) from discontinued operations, net of income taxes		18	(1)	46
Net income	$ 134	$ 224	$ 357	$ 783
Denominator:
Basic: Weighted average common stock	49.8	49.8	49.9	49.7
Weighted average effect of dilutive securities:
Add: net effect of dilutive unvested restricted stock awards (in shares)	0.1	0.2	0.1	0.3
Diluted (in shares)	49.9	50	50	50
Basic EPS:
Income from continuing operations (in dollars per share)	$ 2.69	$ 4.14	$ 7.17	$ 14.81
(Loss) income from discontinued operations		0.36	(0.01)	0.94
Net income per share (in dollars per share)	2.69	4.50	7.16	15.75
Diluted EPS:
Income from continuing operations (in dollars per share)	2.69	4.11	7.16	14.74
Income (loss) from discontinued operations (in dollars per share)		0.36	(0.01)	0.94
Net income per share (in dollars per share)	$ 2.69	$ 4.47	$ 7.15	$ 15.68

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) $ in Millions		3 Months Ended	9 Months Ended
	Nov. 05, 2021	Sep. 30, 2021 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)
LVI
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Ownership interest	19%			19%
Investment carrying amount				$ 6
LoyaltyOne
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Percentage of shares distributed to common stockholders	81%
Stockholders' Equity Note, Stock Split, Conversion Ratio	0.40
Disposal Group, Including Discontinued Operation, Income Statement Disclosures
Total interest expense		$ 3	$ 10
Net interest income		(3)	(10)
Total non-interest income		(169)	(497)
Total non-interest expenses		134	410
Income before provision from income taxes		32	77
Provision for income taxes		14	30
Income from discontinued operations, net of income taxes		18	47
Disposal Group, Including Discontinued Operation, Additional Disclosures
Mandatory payment per credit agreement					$ 725
Depreciation and amortization		9	28
Capital expenditures		$ 4	$ 13